Your Pre-Approval Questions Answered
Take the next step toward your homeownership goals
Understanding pre-approvals - and getting one for yourself - can make the homebuying process fast, simple, and smooth. While there's more to do upfront than for a pre-qualification, getting pre-approved puts you a step ahead of other buyers in the house hunt. Whether you've found your dream home already or are still searching, a pre-approval will put you on track to go from "homebuyer" to "homeowner" faster.
What's a pre-approval?
A pre-approval is a written commitment from a lender to extend a mortgage to you for a specific amount and time period.
While a pre-qualification can determine your ability to repay a loan based on the information you provide, a pre-approval requires an assessment of your creditworthiness. Your information is reviewed and verified by an underwriter, including an analysis of your financial status and credit history, before providing a loan amount and rate offer.
What are the advantages of getting pre-approved?
- Streamline the homebuying process
- Provide a realistic baseline for how much you can afford
- Demonstrate seriousness and capability to sellers
- Choose the best terms out of multiple lenders
What do I need to get pre-approved?
The pre-approval process requires an analysis of your credit and verification of your financial history. Your lender will run a hard credit check, and you'll provide the following documentation:
- A completed mortgage application
- Job and income history
- Income tax returns
- List of assets and liabilities
- Legal identification
- W-2 forms
- Bank statements
- Pay stubs
What factors go into a pre-approval?
When determining the loan type, amount, and rate you qualify for, your lender will consider the following:
- Debt-to-income ratio
- Loan-to-value ratio
- Credit history
- Credit score
- Income and employment history
How long does the pre-approval process take?
The time between applying and getting pre-approved depends on the lender and your situation. At CrossCountry Mortgage, we go a step further than fast pre-approvals with our FastTrack Credit Approval process - getting you to closing in as few as 10 days after you've signed a purchase contract.*
How long does a pre-approval last?
Pre-approvals typically last 90 days. Haven't found or decided on a house in that time? No big deal! You can renew your pre-approval by updating your documentation and receiving a new credit check from your lender.
Now's the time to get pre-approved
Maybe you've found your dream home. Perhaps you're figuring out what you can afford in a new community. Or you could be ready to refinance or renovate your current house. Whatever your financing goals may be, getting pre-approved can help you nail down your options and achieve your objectives. Contact your CrossCountry Mortgage loan officer to start your pre-approval process today.
*CrossCountry Mortgage, LLC cannot guarantee that an applicant will be approved or that a closing can occur within a specific timeframe. Results will vary based on all involved parties’ level of participation at any stage of the loan process.