Mortgage Pre Approval

Getting pre-approved for a mortgage with a lender will give you an advantage as you begin your new home search. Taking this first step will let sellers know that you are a serious buyer. In today’s market, some sellers may even request that you provide your pre-qualification from a lender with a contract offer.

A pre-approval is a tentative commitment from a lender for mortgage funding. You will provide some financial documentation, including information about your income, assets and debts. The lender will run a credit check to verify employment and income. The lender then supplies a letter that states how much the bank is willing to loan you for a home purchase. A pre-approval sets your upper limit for price.

With a pre-approval in hand, agents and sellers will have a positive impression of your interest. Pre-approval is not a guarantee of a mortgage loan amount, but it does establish that as a buyer, you have taken the first steps and have a reliable gauge of the price range you might qualify for.

What is Pre-qualification?

Pre-qualification is not the same as a pre-approval. Pre-qualification is simply an estimate, based on a few self-reported indicators, of how much house you can probably afford.

We have included a pre-qualification calculator to help you get started. The more accurate the information entered into the calculator, the more accurate an estimate of how much house you can afford to buy. Remember, the estimate is a top-range of affordability; you can always look at homes with lower prices.