With a mortgage pre-approval letter in hand, know your buying power before you even look at your first potential new home.
If you are ready to start the homebuying process, you have probably already heard about getting pre-qualified or pre-approved for a mortgage first. In fact, most real estate agents will want a pre-qualification or pre-approval letter before they start showing you homes.
There are several advantages of getting pre-qualified or pre-approved before you start your home search.
- Focus your search
- Know your options
- Move forward confidently
- Show sellers you are serious
What’s the difference between a mortgage pre-qualification and mortgage pre-approval?
A pre-qualification is the first step in the process. When you pre-qualify for a mortgage, you are getting an estimate of how much you can borrow, based on information you provide along with a credit check. At this stage, you will learn about different mortgage loans, look at loan amounts, interest rates, and monthly payments that fit your budget.
A pre-approval takes the pre qualification to the next stage by verifying the information you provided. You will be asked to provide income and asset documentation that will be reviewed to determine loan eligibility. A mortgage pre-approval is as close you can get to a full approval without having a property under contract.
- Pre-Qualify
- Ready to make an offer
- Provide basic information
- Provide financial documents and credit check
- Pre-Approval
- Ready to make an offer
- Provide basic information
- Provide financial documents and credit check
You may find that you qualify for more than you are wanting to spend. It’s a good idea to start with your monthly budget and then convert this to a home price that fits.Â
How long does it take?
Getting a mortgage pre-qualification is a quick process and can be done online, with results typically within an hour. A mortgage pre-approval will take a little longer as you will need to provide your income and asset documents to be reviewed. These documents can be uploaded directly into the application portal.
How long is a pre-qualification or pre-approval letter good for?
A pre-qualification letter doesn’t have an expiration date but it’s a good idea to have it updated if it’s over 30 days old. A pre-approval letter is generally good for 90 days as the information and supporting docs have already been pre-underwritten.
How long is a pre-qualification or pre-approval letter good for?
A pre-qualification letter doesn’t have an expiration date but it’s a good idea to have it updated if it’s over 30 days old. A pre-approval letter is generally good for 90 days as the information and supporting docs have already been pre-underwritten.
Other Loan Types
Possibility starts here. Get approved for your mortgage
If you are ready to start the homebuying process, you have probably already heard about getting pre-qualified or pre-approved for a mortgage first. In fact, most real estate agents will want a pre-qualification or pre-approval letter before they start showing you homes.
Let's Find a Loan That's Right For You
Whether you are buying a new home, getting cash from your home’s equity, seeking a more affordable payment, or want to pay off your home loan sooner, our mortgage professionals explain your options simply and clearly — and offer you competitive rates and terms to help you save.
- Helping Turn Dreams Into Realties Since 1998
We have the experience, the social track record, and access to the right resources to get loans done.
- Flexible Rates & Low Fees
The key to our success has been a combination of consistently offering the lowest possible rates and above all providing outstanding customer service. We take pride in treating our clients with honesty and integrity.
Frequently Asked Questions
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