A mortgage pre-approval is an important step in the home financing process. A pre-approval allows you to determine if you will be able to finance a home, and approximately how much you can afford. This should be the first step before house-hunting, as it will provide parameters for your house search.

The pre-approval process begins with the professionals at GuardHill Financial examining your financial information. We will determine if you are financially capable of buying a home, and what kind of mortgage you can responsibly afford. This process will result in a pre-approval letter, which is a valuable document to present to a seller. This shows the seller that you are serious about your search for a new home.

What You Need for Pre-Approval:

  • Tax Returns
  • Bank Statements
  • Pay Stubs
  • Proof of other loans and debts
  • Social Security Number
  • Additional financial information may be requested

Why is Pre-Approval Important?

Not only is pre-approval important, it is often necessary. Many sellers will not take you seriously without this letter. A pre-approval letter shows the seller you are serious about making an offer, and have the finances to back it up. The pre-approval process will also save you time when it comes time to officially get approved for a loan.

Pre-Approval VS. Pre-Qualification

Pre-qualification is a much quicker “less accurate” estimate of what you can get approved for. It does not take your entire financial history and portfolio into account; therefore it is not always entirely accurate. Pre-approval is a much more accurate estimate of what you can get approved for.

When to Apply for Pre-Approval

At GuardHill Financial, we recommend not applying for pre-approval until you are certain you want to buy a home within the next 90 days. This is how long a pre-approval is typically valid.

Time is our most valuable asset. Don’t waste it by spending countless hours looking at homes that are not in your price range. When you get pre-approved with GuardHill Financial, you are making a serious step toward the home of your dreams. Contact us today to get a fast pre-approval!