1. What is a Mortgage Pre-Approval?<\/h2>\n\n\n\n![\"House](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2018\/01\/House-Exterior-1024x576.jpg\")
<\/figure><\/div>\n\n\nA mortgage pre-approval is<\/strong> an in-depth review of your financial information that reflects your ability to purchase a home. <\/p>\n\n\n\n A pre-approval is more involved than a pre-qualification, but less involved than a full mortgage application. (More on that distinction in a moment.) Once you have a pre-approval, you\u2019ll be able to demonstrate that you are a serious homebuyer whose finances have been vetted and whose mortgage has been conditionally approved by a lender.<\/p>\n\n\n\n
To be get a pre-approval for a mortgage, you\u2019ll need to complete a financial profile. (Morty\u2019s financial profile takes about 20-30 minutes to complete.)<\/p>\n\n\n\n
You\u2019ll provide some basics, like your name, work history, and where you\u2019ve lived the last few years. You\u2019ll also need to provide documentation of your income, assets, and debts.<\/p>\n\n\n\n
Typically, that documentation includes:<\/p>\n\n\n\n
\n- Your most recent W2s<\/li>\n\n\n\n
- Your federal tax returns<\/li>\n\n\n\n
- A few months worth of bank statements for checking and savings accounts<\/li>\n\n\n\n
- Information about other investment assets or any property you already own<\/li>\n<\/ul>\n\n\n\n
You\u2019ll also give your permission for your lender to run a credit report with all three of the major credit reporting bureaus.<\/p>\n\n\n\n
Your financial information will be matched up with lenders’ debt-to-income and credit score requirements. Once you\u2019ve submitted your profile, you\u2019ll find out if you qualify for a mortgage. If you do, you’ll also get a figure for the the maximum amount a mortgage lender would be willing to loan you, based on the information you provided.<\/p>\n\n\n\n
Here\u2019s the upside of sharing your detailed financial information with potential lenders. As long as your financial situation remains the same, you can use a pre-approval letter to demonstrate to sellers and real estate professionals that you are a qualified homebuyer. The pre-approval shows anyone interested that you are ready and able to get financing for your future home purchase.<\/p>\n\n\n\n
2. Pre-Qualification and Pre-Approval: What\u2019s the Difference?<\/h2>\n\n\n\n![\"\"](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2017\/11\/StockSnap_JU7NF3E8WP-1024x781.jpg\")
<\/figure><\/div>\n\n\nPre-qualification and pre-approval sound like they\u2019re basically the same thing, but that\u2019s not the case.<\/p>\n\n\n\n
A mortgage pre-qualification<\/em> is an informal assessment of what sort of mortgage terms a borrower might<\/em> expect based on her self-reported financial situation.<\/p>\n\n\n\nSo, to pre-qualify, you might tell a lender how much money you make, give a ballpark estimate of your current debt load, and take a guess at your current credit score.<\/p>\n\n\n\n
The lender will punch those numbers into their in-house spreadsheet. Then, the lender will spit out a rough guess as to whether you could potentially qualify for a mortgage. <\/p>\n\n\n\n
Pre-qualification doesn\u2019t require a credit check or any sort of asset verification. So it\u2019s usually not especially accurate. And it\u2019s definitely not wise to base your home search on a pre-qualification.<\/strong><\/p>\n\n\n\nPutting in an offer on a home based on a pre-qualification is sort of like claiming to be a millionaire and showing someone a photo of you holding one of those giant novelty photo-op checks as proof. Maybe you really did win the lottery. But you can\u2019t expect folks to believe you without real and verifiable evidence.<\/p>\n\n\n\n
3. A Mortgage Pre-Approval Isn\u2019t a Guarantee of Financing<\/h2>\n\n\n\n![\"\"](\"https:\/\/morty-content-production.s3.amazonaws.com\/uploads\/2017\/02\/justin-schuler-255981.jpg\")
<\/figure><\/div>\n\n\nOnce you\u2019ve been pre-approved for a mortgage, you can sleep a little easier at night, knowing that a lender is willing to fund your mortgage\u2014as long as you have been truthful on your pre-approval application, and as long as your financial situation doesn\u2019t change drastically between now and when you go in to formally close the deal.<\/p>\n\n\n\n
If you make any major changes to your financial situation\u2014if you change jobs, take on any additional debt, or co-sign for a loan for a friend of relative\u2014your initial pre-approval won\u2019t matter. You\u2019ll need to start all over with your mortgage application. <\/p>\n\n\n\n
4. A Mortgage Pre-Approval Isn\u2019t a Commitment to a Lender<\/h2>\n\n\n\n
A lender can back out of a pre-approval if the lender finds that your financial situation has changed. Similarly, you are not obligated to take out a mortgage just because you are pre-approved for one. A pre-approval for a mortgage from a particular lender does not obligate you to take out a mortgage with that lender. Or any lender, for that matter.<\/p>\n\n\n\n
So if you\u2019re sure you want to buy a home, but only if you can find the right one? It still pays to get pre-approved for financing. You won\u2019t be obligated to take out and repay a mortgage just because you\u2019ve been pre-approved.<\/p>\n\n\n\n
Are You Ready to Get a Mortgage Pre-Approval?<\/h2>\n\n\n\n
Are you actively looking at homes? Serious about becoming a homeowner? Started with your Morty Pre-Approval here<\/a>.<\/p>\n\n\n\n
<\/figure><\/div>\n\n\nA mortgage pre-approval is<\/strong> an in-depth review of your financial information that reflects your ability to purchase a home. <\/p>\n\n\n\n A pre-approval is more involved than a pre-qualification, but less involved than a full mortgage application. (More on that distinction in a moment.) Once you have a pre-approval, you\u2019ll be able to demonstrate that you are a serious homebuyer whose finances have been vetted and whose mortgage has been conditionally approved by a lender.<\/p>\n\n\n\n To be get a pre-approval for a mortgage, you\u2019ll need to complete a financial profile. (Morty\u2019s financial profile takes about 20-30 minutes to complete.)<\/p>\n\n\n\n You\u2019ll provide some basics, like your name, work history, and where you\u2019ve lived the last few years. You\u2019ll also need to provide documentation of your income, assets, and debts.<\/p>\n\n\n\n Typically, that documentation includes:<\/p>\n\n\n\n You\u2019ll also give your permission for your lender to run a credit report with all three of the major credit reporting bureaus.<\/p>\n\n\n\n Your financial information will be matched up with lenders’ debt-to-income and credit score requirements. Once you\u2019ve submitted your profile, you\u2019ll find out if you qualify for a mortgage. If you do, you’ll also get a figure for the the maximum amount a mortgage lender would be willing to loan you, based on the information you provided.<\/p>\n\n\n\n Here\u2019s the upside of sharing your detailed financial information with potential lenders. As long as your financial situation remains the same, you can use a pre-approval letter to demonstrate to sellers and real estate professionals that you are a qualified homebuyer. The pre-approval shows anyone interested that you are ready and able to get financing for your future home purchase.<\/p>\n\n\n\n Pre-qualification and pre-approval sound like they\u2019re basically the same thing, but that\u2019s not the case.<\/p>\n\n\n\n A mortgage pre-qualification<\/em> is an informal assessment of what sort of mortgage terms a borrower might<\/em> expect based on her self-reported financial situation.<\/p>\n\n\n\n So, to pre-qualify, you might tell a lender how much money you make, give a ballpark estimate of your current debt load, and take a guess at your current credit score.<\/p>\n\n\n\n The lender will punch those numbers into their in-house spreadsheet. Then, the lender will spit out a rough guess as to whether you could potentially qualify for a mortgage. <\/p>\n\n\n\n Pre-qualification doesn\u2019t require a credit check or any sort of asset verification. So it\u2019s usually not especially accurate. And it\u2019s definitely not wise to base your home search on a pre-qualification.<\/strong><\/p>\n\n\n\n Putting in an offer on a home based on a pre-qualification is sort of like claiming to be a millionaire and showing someone a photo of you holding one of those giant novelty photo-op checks as proof. Maybe you really did win the lottery. But you can\u2019t expect folks to believe you without real and verifiable evidence.<\/p>\n\n\n\n Once you\u2019ve been pre-approved for a mortgage, you can sleep a little easier at night, knowing that a lender is willing to fund your mortgage\u2014as long as you have been truthful on your pre-approval application, and as long as your financial situation doesn\u2019t change drastically between now and when you go in to formally close the deal.<\/p>\n\n\n\n If you make any major changes to your financial situation\u2014if you change jobs, take on any additional debt, or co-sign for a loan for a friend of relative\u2014your initial pre-approval won\u2019t matter. You\u2019ll need to start all over with your mortgage application. <\/p>\n\n\n\n A lender can back out of a pre-approval if the lender finds that your financial situation has changed. Similarly, you are not obligated to take out a mortgage just because you are pre-approved for one. A pre-approval for a mortgage from a particular lender does not obligate you to take out a mortgage with that lender. Or any lender, for that matter.<\/p>\n\n\n\n So if you\u2019re sure you want to buy a home, but only if you can find the right one? It still pays to get pre-approved for financing. You won\u2019t be obligated to take out and repay a mortgage just because you\u2019ve been pre-approved.<\/p>\n\n\n\n Are you actively looking at homes? Serious about becoming a homeowner? Started with your Morty Pre-Approval here<\/a>.<\/p>\n\n\n\n\n
2. Pre-Qualification and Pre-Approval: What\u2019s the Difference?<\/h2>\n\n\n
<\/figure><\/div>\n\n\n3. A Mortgage Pre-Approval Isn\u2019t a Guarantee of Financing<\/h2>\n\n\n
<\/figure><\/div>\n\n\n4. A Mortgage Pre-Approval Isn\u2019t a Commitment to a Lender<\/h2>\n\n\n\n
Are You Ready to Get a Mortgage Pre-Approval?<\/h2>\n\n\n\n