Mortgage Process Questions

Pre-qualification is usually an early estimate based on information you provide. Pre-approval typically involves a more detailed review of credit, income, assets, and documents to verify the information you provided. Your file is then reviewed by an automated underwriting system to let you know whether you qualify or not. Pre-approvals are typically needed to submit an offer on a home.

Common items include drivers license, 30 days of recent pay stubs, 2 years of W-2s or 1099’s, 2 years of tax returns, 2 months of bank statements. Self-employed borrowers may need business returns and additional records. I will give you a detailed list of documents needed based off your situation. More documents could be needed such as proof of child support, alimony, tax transcripts, divorce decree, letter of explanations, etc.

Some straightforward files can be reviewed quickly after a complete application and documents arrive; complex income, credit, or assistance scenarios take longer. You could potentially get pre-approved same day! Sometimes it takes a few days depending on what is needed and how quickly you or your employer are with getting us whats needed.

Start before serious home shopping, even if you plan to buy in several months. Early review gives you time to improve credit, document income, compare loan programs, and build the right cash cushion. Your letter can be refreshed closer to making an offer. Its never too early to be prepared and come up with a game plan. I would say up to a year or so in advance is completely normal and very common.

A realtor is going to send you over to a mortgage lender, so might as well just speak to me first. Getting pre-approved before touring homes helps set a realistic price range and lets you move quickly when you find a home.