How to get pre-approved for a mortgage?

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    StellarFi
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    Team StellarFi
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    With a mortgage pre-approval, you can get an idea of how much you can borrow towards a home loan. Lenders look at your credit score, income, employment, assets, and other financial information to decide which type of loan you could qualify for, how much you can borrow, and at how much interest rate.

    A pre-approval is different from pre-qualification. You need to submit documents and provide more information like your credit report, bank statements, pay stubs, etc. Pre-approvals therefore may require a hard credit check which will knock a few of your credit score points. 

    A pre-qualification, on the other hand, is only an initial assessment of your financial situation. The lender only gives you an estimate of the loan amount and interest rate. This may change once the lender accesses your credit report, bank statements, and other financial documents. 

    Note that getting a pre-approval does not guarantee a loan approval. Your lender may review further property details like your home appraisal value, condition (if it is a Federal Housing Association (FHA) Loan), and title of the property before finalizing your loan approval.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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