How to Prepare for Getting Pre-Approved
Getting pre-approved is one of the most important steps in the home buying process. But to do it properly, you need to be ready. It is not just filling out a quick form online. A thorough pre-approval takes some work on your end, but it is well worth it.
Why Preparation Matters
A proper pre-approval is not just a rate quote. It is a full review of your income, debts, credit, and down payment. Preparing the right documents ahead of time makes the process smoother and ensures the numbers you get are accurate. That way, you are not faced with surprises when it comes time to write an offer.
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Documents You Will Likely Need
What you will need depends on your situation, but here are some of the basic things lenders will ask for:
If you are a salaried employee:
If you are self-employed:
If you have dependents under 15:
For everyone:
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Proof of your down payment, such as bank statements, investment statements, or a gift letter if funds are being gifted
Check Your Credit Beforehand
Your broker will need to pull a credit report, but it is smart to check your own first. You can order a free copy from Equifax or TransUnion. This gives you a sense of where things stand and whether there is anything you can work on.
Other Steps to Take
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Avoid taking on new debt, such as a car loan or credit card, before you are pre-approved.
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Keep your employment stable, switching jobs during the process can complicate things.
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Stay organized, save your documents in one folder so they are easy to update when your broker asks.
FAQ
Does a pre-approval mean I am guaranteed a mortgage?
Not quite. It is based on the information you provide and subject to lender review once you have an accepted offer.
What is the difference between a rate hold and a pre-approval?
A rate hold simply guarantees you a rate for a set period, usually 90 to 120 days, but it does not involve reviewing your income, debts, or down payment. A proper pre-approval is a full review of your finances and gives you a much clearer picture of what you can actually afford.
Do I have to gather all documents right away?
It is best to prepare them early, but your broker can guide you on what is needed first.
Final Thoughts
Preparing properly for a pre-approval takes a little effort, but it gives you a clear picture of what you can afford and helps avoid delays later on. The more organized you are upfront, the smoother your home buying process will be.
[Click here to start your pre-approval and get your document checklist]