Pre-Approved

GET

UNLOCK YOUR PURCHASING POWER

SHOP FOR A LENDER

Getting pre-approved is the first step to purchasing a home!

You are free to choose whatever lender you like, but here is a list of mortgage companies we’ve worked with in the past.

UNLOCK YOUR PURCHASING POWER

Terminology 101

LENDER

PREQUALIFICATION VS PRE-APPROVAL

What is mortgage prequalification?

Prequalification is an early step in your homebuying journey. When you prequalify for a home loan, you’re getting an estimate of what you might be able to borrow, based on information you provide about your finances, as well as a credit check.

Prequalification is also an opportunity to learn about different mortgage options and work with your lender to identify the right fit for your needs and goals.

What is mortgage preapproval?

Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place. You will complete a mortgage application and the lender will verify the information you provide. They’ll also perform a credit check. If you’re preapproved, you’ll receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount, good for 90 days.

Getting preapproved is a smart step to take when you are ready to put in an offer on a home. It shows sellers that you’re a serious homebuyer and that you can secure a mortgage – which makes it more likely that you’ll complete your purchase of the home.

Expect surprises! Lenders look at every detail of your finances when granting preapproval.

You might be asked about a car loan payment you made with a credit card, for example.

Tip

HOME

BUYER

WHAT TO EXPECT

Employment and income

Where do you work? How much do you make? How long have you been at your job?
How is your income derived, steady salary or irregular income?

Debt

What recurring debts do you have? This includes auto loans, alimony, student loans and credit cards.

Savings and assets

How much money do you have in the bank?
How much do you have saved in 401(k), stocks, bonds, mutual funds and other investment accounts?

Down payment

What is the size of the down payment?
Where does the down payment money come from , it all from your savings, or did some of it come as a gift from family or a grant from a nonprofit?