What Is Mortgage Pre-Approval?
A mortgage pre-approval is a review of your income, assets, credit, and financial history to determine how much you may qualify to borrow.
It helps you understand your budget and demonstrates to sellers that you are a serious buyer.
Why Get Pre-Approved Before Looking at Homes?
Getting pre-approved allows you to:
- Shop with confidence
- Understand your realistic price range
- Avoid falling in love with homes outside your budget
- Identify financial issues early
- Make stronger offers in competitive markets
What Documents Are Needed for Mortgage Pre-Approval?
Depending on your situation, you may need:
Proof of Income
- Pay stubs
- W-2s
- Tax returns
Asset Documentation
- Bank statements
- Retirement or investment account information
Employment Information
- Employer details and employment history
Identification & Other Financial Information
- Government-issued ID
- Information about debts and obligations
Does Getting Pre-Approved Affect Your Credit?
A mortgage pre-approval may include a credit inquiry, which can cause a small temporary impact on your credit score.
For most buyers, the benefits of understanding their purchasing power far outweigh this minor change.
How Long Does a Mortgage Pre-Approval Last?
Most mortgage pre-approvals are valid for approximately 60 to 90 days, though timelines can vary.
FAQ
Should I get pre-approved before contacting a Realtor?
Yes. Pre-approval helps you understand your budget and allows your Realtor to focus on homes that match your financial goals.
How quickly can I get pre-approved for a mortgage?
The timeline depends on how quickly you provide documentation, but many buyers can complete the process relatively quickly.
