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Steps to getting a pre approval

The pre-approval process in home buying is a crucial step that potential homebuyers go through before they start searching for a home. It involves a thorough evaluation of your financial situation by a mortgage lender to determine the amount of money they are willing to lend you for a home purchase. Here's a step-by-step explanation of the pre-approval process:

  1. Gather Financial Information:

    1. Lenders will require detailed information about your financial situation. This includes your income, employment history, assets, debts, and credit history. Be prepared to provide documents such as pay stubs, tax returns, bank statements, and information about your debts and other financial obligations.

  2. Choose a Lender:

    1. Research and choose a mortgage lender. You can approach banks, credit unions, or mortgage brokers. Consider factors such as interest rates, fees, and the lender's reputation.

  3. Complete a Pre-Approval Application:

    1. Submit a pre-approval application with the chosen lender. This application will typically include information about your income, employment, assets, debts, and other relevant financial details.

  4. Credit Check:

    1. The lender will perform a thorough credit check to assess your creditworthiness. A higher credit score generally results in more favorable loan terms.

  5. Verification of Information:

    1. The lender will verify the information you provided in the application. This may involve contacting your employer, checking your bank statements, and verifying other financial details.

  6. Receive Pre-Approval Letter:

    1. If you meet the lender's criteria, you will receive a pre-approval letter. This letter is a conditional commitment from the lender, stating the amount they are willing to lend you based on the information provided.

  7. Determine Your Budget:

    1. With the pre-approval letter in hand, you'll have a clear understanding of your budget for home shopping. This helps you focus on properties that are within your financial means.

  8. Begin House Hunting:

    1. Armed with a pre-approval letter, you can start searching for homes within your budget. Sellers often prefer working with buyers who have been pre-approved because it indicates that they are serious and financially capable of making a purchase.

  9. Final Loan Approval:

    1. It's important to note that pre-approval is not a guarantee of a mortgage. Once you find a home and enter into a purchase agreement, the lender will conduct a more detailed review, and you will need to go through the final loan approval process.

  10. Close the Deal:

    1. After final loan approval, you can proceed to closing. This involves signing the necessary paperwork, transferring funds, and officially becoming the owner of the property.

    2. Keep in mind that a pre-approval is typically valid for a certain period (often around 60-90 days), so it's important to start your home search promptly after obtaining pre-approval. Additionally, changes in your financial situation during this period may affect the pre-approval amount or its validity.


Always check with a lender to see what you qualify for, all lenders do not always have the same programs available.


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