How to get a mortgage pre-approval
Mortgage Preapproval vs Prequalification
There is a big difference between mortgage preapproval and prequalification. A lender can prequalify you after a quick conversation, but sellers won’t take your offer very seriously. Whereas a preapproval will tell sellers that your lender has done their due diligence in assessing your ability to qualify for a loan. In today’s competitive market, you need to submit a preapproval with desktop underwriting.
It is important to note that having a preapproval does not obligate you to a particular lender. You should shop around for the best rate and terms. You can apply for a mortgage pre-approval through many different types of lenders. Mortgage brokers tend to be a good choice because they usually work for an independent mortgage company so they can shop multiple lenders on your behalf. Mortgage brokers are typically paid by the lender after a loan closes; sometimes the borrower pays the broker’s commission upfront at closing. ASK!
- Driver’s license or passport
- SS or permanent resident card
- Credit history- lender will pull this for you
- Employment verification
- Pay stubs for the past 30 days
- Federal income tax returns
- W-2s for the past two years
- Proof additional income
- Bank statements
Don’t forget to bring proof of funds for your down payment and closing costs in the form of bank statements, statements from stock accounts and mutual funds, a grant approval certificate and/or a gift letter.