Pre-Approval

- The pre-approval stage is the second step in the mortgage process and plays a crucial role in determining your borrowing power before you start shopping for a home.

- During this step, you’ll complete a formal mortgage application and provide key financial documents such as proof of income, employment history, bank statements, tax returns, and details about your debts and assets.

- The lender will carefully review your credit score, income stability, and overall financial profile to assess your ability to repay the loan. Based on this evaluation, you’ll receive a pre-approval letter stating the maximum loan amount you qualify for, along with potential interest rates and terms.

- This letter not only helps you set a realistic budget but also strengthens your position when making an offer, showing sellers that you are a serious and qualified buyer.

- Pre-approval also helps uncover any potential issues early on, giving you time to address them before moving forward, and ensuring a smoother path to final approval once you’ve found your desired property.