The short answerTo get pre-approved, complete an application, share your income, asset and ID documents, and authorize a credit review. If everything checks out you receive a written pre-approval letter, often within a day or two of a complete file.
Pre-qualification vs. pre-approval
A pre-qualification is an estimate based on what you tell us. A pre-approval is based on verified documents and a credit review, so sellers and agents take it much more seriously. Start with the online pre-qualification, then move to a full pre-approval when you are ready to shop.
The documents that matter
Having these ready makes the process fast:
- Pay stubs covering the last 30 days.
- W-2s for the last two years (or two years of tax returns if self-employed).
- Two months of statements for all bank and investment accounts.
- A photo ID.
- Details of any other properties, debts or obligations such as child support.
- A gift letter if family is helping with the down payment.
Self-employed? You may be able to qualify with bank statements instead of tax returns. See bank statement loans.
What underwriting looks at
Lenders focus on your debt-to-income ratio (your monthly debts plus the new payment, divided by gross monthly income), your credit history, your down payment and your reserves after closing. Limits vary by program and lender, which is one reason it helps to have a broker compare several.
Step by step
- 1Complete the secure online application.
- 2Upload your documents.
- 3Authorize a credit review.
- 4We review your options and payment together.
- 5You receive a written pre-approval letter you can share with your agent.
Keep your letter strong
Pre-approvals usually have an expiration date, often 60 to 90 days. Keep your finances steady while you shop, and let me know about any change in income, job or debts. I can update your letter for each offer so it shows the right price and loan amount.