It's not just the key to your home - It's the key to your future!

The pre-approval process is essentially a mortgage application. This means your lender will want to take a comprehensive look at your finances. You should be prepared to provide information on the following:

• Proof of income

• Employment verification

• Proof of assets

• Credit history

• Identification

• Debt-to-income ratio (DTI)

Before starting the pre-approval process, you'll want the necessary documentation to ensure the process goes smoothly. Here are a few items you should have on hand:

• W-2 statements

• Pay stubs

• Bank statements

• License

• Social Security number

Once you've submitted all your information to the lender, you can expect to receive your loan estimate within 3 business days, though this may be much shorter. The loan estimate will let you know whether you've been pre-approved and for how much.

 

 

When you get pre-approved, you usually get a pre-approval letter. There are a few reasons the pre-approval letter is important. First, real estate agents typically want to see your pre-approval letter before they show you houses. This ensures they don’t waste time showing you homes outside your budget. Second, the pre-approval letter is something you can share with the home’s seller when you make an offer. It shows you won’t have problems getting financed for the amount you’re offering.

 

 

Pre-approval doesn't last forever. Check your expiration date and keep it in mind as you look at homes. Though it varies from lender to lender, pre-approval is typically valid for 60 – 90 days. If you haven't settled on a house, you can request a renewal by giving your lender your most up-to-date financial and credit information.