The pre-approval process is a crucial step in the home-buying journey!

It involves a lender evaluating your financial situation to determine the amount of money they are willing to lend you for a mortgage. This pre-approval gives you a clear idea of your budget when house hunting and also demonstrates to sellers that you are a serious buyer. 

Here’s an overview of the pre-approval process:

Gather Your Financial Documents:

• You’ll need to provide documentation that proves your financial stability. This typically includes
  > Proof of identity (driver’s license, passport, etc.).
  > Proof of income (pay stubs, W-2 forms, tax returns) for the past couple of years.
  > Proof of assets (bank statements, retirement account statements).
  > Proof of employment (employer contact information, recent pay stubs).
  > Information about your debts (credit card statements, loans).
• Choose a Lender:
• Research and select a reputable lender or mortgage broker to work with. You can choose to go through a traditional bank, credit union, or online mortgage lender.
• Submit an Application:
• You’ll need to fill out a mortgage application with your chosen lender. This application will include details about the property you intend to buy, your financial information, and your employment history.
• Credit Check:
• The lender will run a credit check to assess your creditworthiness. Your credit score will play a significant role in determining the interest rate and terms of your potential mortgage.
• Lender Review:
• The lender’s underwriting team will review your application, financial documents, and credit history. They will assess your ability to repay the loan based on your income, assets, debts, and credit score.
• Verification and Documentation:
• The lender may request additional documentation or clarification on certain aspects of your application. Promptly provide any requested documents to keep the process moving smoothly.
• Pre-Approval Letter:
• Once your application has been reviewed and approved, the lender will provide you with a pre-approval letter. This letter outlines the amount you’re pre-approved to borrow, the interest rate, and any conditions that need to be met.
• Time to shop for a Home!
  Armed with your pre-approval letter, you can confidently start house hunting within your budget. Sellers will take your pre-approval seriously, as it demonstrates your ability to secure financing.

It’s important to note that pre-approval is not a guarantee of a mortgage loan. It’s based on preliminary information and is subject to final approval once you’ve chosen a specific property. Also, keep in mind that the pre-approval process may vary slightly between lenders and regions.

Additionally, obtaining multiple pre-approval letters from different lenders within a short period can impact your credit score, so it’s generally best to research lenders and choose one to work with initially.

If you have any questions, or need lender recommendations, please don’t hesitate to reach out!