How to get pre-approved for a mortgage
Josh Neimark
Getting pre-approved for a mortgage is an important step in the home-buying process. Pre-approval gives you a good idea of how much you can afford to spend on a home and shows sellers that you're a serious buyer. Here are the general steps to get pre-approved for a mortgage:
Check your credit score:
Your credit score is an important factor in determining your eligibility for a mortgage and the interest rate you'll pay. You can check your credit score for free at sites like Credit Karma, Credit Sesame, or through your credit card company.
Gather financial documents:
Lenders typically require documentation to verify your income, assets, and employment status. Some of the documents you may need to provide include pay stubs, W-2s or tax returns, bank statements, and proof of any other sources of income.
Choose a lender:
You can get pre-approved for a mortgage from a bank, credit union, or mortgage lender. Consider getting quotes from multiple lenders to compare interest rates and fees.
Submit your application:
To get pre-approved, you'll need to submit a mortgage application to the lender. The application will ask for your personal and financial information.
Wait for the lender to review your application:
The lender will review your application and documentation to determine your eligibility for a mortgage. They may ask for additional documentation or information.
Receive pre-approval letter:
If you are approved, the lender will issue a pre-approval letter that states the maximum loan amount you are qualified to borrow. This letter can be used to show sellers that you are a serious buyer and that you have financing in place.
It's important to note that pre-approval is not a guarantee that you will be approved for a mortgage. Your loan can still be denied during the underwriting process if your financial situation changes or if there are issues with the property you want to purchase. Additionally, getting pre-approved for a mortgage doesn't lock in an interest rate, and rates can fluctuate during the home-buying process.
