Prior to shopping for a new home, prospective homebuyers should get pre-qualified for a mortgage loan. It’s a quick and easy process that helps gage how much how you can afford. Even better, take the extra steps to get pre-approved and elevate your negotiating and purchasing power. Becoming pre-approved helps validate your financial stability as a serious buyer. It’s a little more work, but well worth it.

What’s the difference? More than you think

It’s important to know the difference between being pre-qualified by a mortgage lender and pre-approved.

  • Pre-qualified means your financial status has been examined and determines how much house you can afford.  You and your mortgage lender will discuss your income, employment, credit and liability, assets, and desired payments. Pre-qualification does not require too much documentation up front.
  • Pre-approved, on the other hand, dives deeper into your financials and requires additional  income documents. Your mortgage lender will request basic financials including W-2 forms, tax returns, paystubs, and employment verification. Disclosing your current debt and liquid assets is also required to help determine how much debt you can take on.

Simply stated, pre-approved homebuyers carry more clout than those who are pre-qualified.

  • Real-estate agents and sellers both prefer working with pre-approved homebuyers.
  • Working with a pre-approved homebuyer gives real estate agents more negotiating power.
  • Sellers incur less risk when working with a pre-approved buyer.

How to Get Pre-Approved

Do your homework upfront, it is worth the time and effort. First step, get these basic documents in order:

  • Social security number and ID
  • Tax returns for last two years
  • Paystubs for last two months
  • W-2s for last two years
  • Bank statements – checking, savings, retirement, investments
  • Credit history
  • Proof of down payment

Your mortgage lender will also want to review:

  • Other sources of income: child and/or alimony support, return on investments, and retirement benefits
  • Current debt: care payments, credit cards, and student loans.

Get Pre-Approved Today

Achieving a certified pre-approval is the most certain and dependable way to protect you and get you well on your way to buying the home of your dreams.

Contact your loan officer today to get started at