Loan Pre-approval

First step to buying a home is getting pre approved for a mortgage loan. Knowing how much you qualify for is essential, how much of a payment do you feel you can afford. It may not mean the same as what the lender would agree too. Or you may qualify for more than you want too spend.

Pre-qualification is not the same as an approval, the lender looks at their credit, down payment, and income.

Pre-Approval is when the information has all been verified and the lender has received all other information they request.

When you have been pre-approved and are looking for a home do not go out and apply for credit or credit cards, it can hurt your debt to income ratio, meaning you won’t be able to purchase a home. Listen to the advice of your mortgage broker.

Here are the basics, what to supply a Lender

Pre-qualification work sheet:

  • Two years of tax returns
  • Last two pay checks stubs
  • Last two months of bank statements
  • Copy of sales contact when available
  • If self employed last two years of 1040 tax forms
  • If self-employed, corporate tax returns
  • If self-employed, unaudited, year to date profit/loss statement


The loan process works like this

The lender takes the application and opens the file, and the lender gives the loan package to the processor to verify all information. The finished package is sent to the underwriter for review, and then proceeds to closing for signing. The last step, it closes and records with the county. When all is completed congratulations you are a home owner.