Pre-Qualification and Pre-Approval

What’s the difference between pre-qualification and pre-approval? In general a pre-qualification is the first step and is normally sufficient to make an offer on a home. A pre-approval is the next step which includes an underwriter reviewing and providing a preliminary approval of your income, assets and credit information. It is not a guarantee of a loan, but the next best thing.

To complete a pre-qualification our qualified team will review your income, assets, work history, and credit to determine if you meet the lender’s mortgage guidelines. These guidelines can run to 100’s of pages long in detail. We ask potential buyers to provide the following documents in order to complete a pre-qualification/pre-approval.

1. Recent pay stub. (include any information about child support/spousal support income if applicable).

2. Income history (all that apply):

a.) Last 2 years w2’s for all buyers b.) Award letters for Retirement/Disability/etc. — if applicable. c.) If self employed income or rental properties, then last 2 years 1040’s with all schedules.

3. Copy of your ID and SS card

4. Bank/investment statement to show the down payment available.

We typically complete a pre-qualification in 1 business day, pre-approvals can take 3-4 business days. If you have questions about getting pre-qualified or approved please reach out to us.