Understanding The Process Of a Mortgage Pre-approval

A pre-approval is usually a written statement for a lender stating, that means the lender´s preliminary determination that a borrower will qualify for a particular loan amount under that lender´s guidelines. The loan and determination amount are based on credit information and income. Most pre-approval letters are good for 90 to 60 days. This process is an evaluation that determines whether the borrower qualifies for a loan and it´s crucial for any home buyer. If you are looking to buy a new house and want to know more about pre-approval mortgages, take a look at this website for more information.

Being pre-qualified for a loan, it is not the same as being pre-approved, here you will see the difference between the two of them

  • Pre-qualification: This is the initial step in the mortgage process, and it´s usually pretty simple. To pre-qualify for a mortgage, you need to go with a lender and provide information about your assets, income, and liabilities. Based on the information, the lender will estimate how much money you can borrow.
  • Pre-approval: The pre-approval process is more formal and involved, you will complete an official mortgage application, then supply the lender with the documents that are necessary to develop an extensive check on your current credit rating and your financial background.

To get a mortgage pre-approval, you need to provide paperwork that shows your assets, income and regular commitments against your income

Proof your income

  • Thirty days of pay stubs that sho income as well as year-to-date income
  • Two years of federal tax returns
  • A quarterly statement or 60 days of all asset accounts including your savings, checking and any investment accounts
  • Two years of W-2 statements


You will need to present investment account statements and bank statements to prove that you have funds for the closing costs and the down payment on the residence as well as cash reserves.

Employment verification

Your lender will have to see your pay stubs and will likely call your employer to verify that you are still employed and to check on your salary. Lenders today will want to make sure that they are loaning only to borrowers with a stable work history.

Another documentation

Your lender will have to copy your driver´s license or state ID card and also will need your signature and social security number, allowing the lender to pull a credit report. Be prepared at the pre-approval session and later to provide any additional paperwork requested by the lender.

Usually, the pre-approval process takes four to two weeks. With a pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a house or below that the price level. Getting pre-approved for a mortgage also enables you to move faster when you want to make an offer. If you are a first-time buyer, it is recommended to contact a real estate agent to assess you in any difficulty you present when trying to get a mortgage pre-approval. This video shows you the steps for getting a mortgage pre-approval.