Getting pre-approved* for a mortgage can be a step many overlook in the mortgage process. However, preapproval gives you an edge when buying a home in a competitive housing market.
What is a preapproval?
Preapproval differs from prequalification. Prequalification is based on the information you provide to the lender and gives an estimate of how much you are qualified to purchase. By comparison, preapproval verifies that information and documentation to determine exactly how much money lenders are willing to lend you.
Why should I get preapproved?
A preapproval can ease a lot of headaches when it comes to purchasing a house. It can help you spot potential credit problems and give you a chance to correct them before shopping for a house. Being pre-approved also gives you an edge in a competitive housing market, since many real estate agents don’t accept offers that aren’t first pre-approved.
What documents do I need to get preapproved?
You’ll need the same documents as you’d need to get a mortgage:
Pay stubs from the past 30 days
Last 2 years federal tax returns & W2’s
Credit report—We can provide this for you
Two months worth of bank statements of all account types
Contact us today to start the preapproval process! www.sffmortgage.com/contact-us
Opinions expressed are solely my own and do not express the views of my employer.
*All preapprovals are reviewed by an underwriter. Pre-approvals are given to clients who have met qualifying approval criteria and specific loan requirements at the time of applications. Results may vary.