Mortgage Pre-Approval

How much home can you really afford?

A mortgage pre-approval will give you a clearer picture of your purchasing budget, and a mortgage pre-approval letter will give you greater bargaining power in the eyes of sellers. CrossCountry Mortgage can help you with the pre–approval process so you can shop smarter for your next home.
Get Pre-Approved

What is a mortgage pre-approval?

Mortgage pre-approval is the process of reviewing your finances to determine the maximum home loan that you can afford. Lenders like CrossCountry Mortgage will take an in-depth look at your finances, including your:

  • Credit score
  • Debt-to-income ratio (DTI)
  • Income
  • Employment history

To be clear, a mortgage pre-approval isn’t binding, and your final mortgage loan won’t be determined until you go through the actual lending process. However, many sellers prefer to work with buyers who have a mortgage pre-approval letter, which can be invaluable in a competitive housing market.

Pre-approval vs. pre-qualification

Pre-approval and pre-qualification are both ways of determining your purchase budget. And while some lenders use the terms interchangeably, they are not the same. During pre-qualification, you’ll simply provide an overview of your income, monthly debts, and other financial information, and you’ll receive a rough estimate of your maximum loan amount.

Your mortgage lender will not check your credit report during pre-qualification. This makes the process much less accurate than pre-approval. However, pre-qualification has its advantages. Pre-qualification can give you a general idea of your price range, which can help you start the process of looking for a home.

CrossCountry Mortgage recommends that you seek pre-approval once you’re truly ready to buy a home.

Mortgage pre-approval lasts for a maximum of 90 days, so it’s best to get pre-approved once you’re officially ready to start making offers on a home. Real estate agents often prefer to show houses to buyers who have a pre-approval letter, so going through this process can aid you in your journey.

What happens if your pre-approval letter expires? You’ll need to repeat the process since it’s possible that your credit history has changed since the original inquiry.

Homebuyers will see enormous benefits from seeking mortgage pre-approval

By applying for pre-approval, you’ll be able to:

  • Obtain a reliable loan estimate when buying a home
  • Compare mortgage interest rates and terms from multiple lenders
  • Narrow your home search to houses in your price range
  • Make offers with greater confidence
  • Achieve greater credibility in the eyes of sellers and real estate agents
  • Close on the home faster since your financial information is on file

What if your pre-approval amount is lower than you expected? In this case, pre-approval may be a wake-up call. You may want to check your credit report to see where you stand or take some time to reduce your monthly debt payments (especially high-interest credit card debt) to improve your eligibility for a loan.

You can obtain a free copy of your credit report from each of the three major credit bureaus. Check for errors and think of ways to improve your credit score, then apply for pre-approval once your financial situation improves.

Get Pre-Approved

Pre-approval will help you determine how much money you can afford to borrow.

To get pre-approved for a mortgage, your first step should be to gather your financial documents. These include:

  • Pay stubs/proof of income
  • Bank statements/proof of assets
  • Personal ID (driver’s license, Social Security number)
  • Tax returns
  • W-2 statements (or similar tax forms)

Lenders such as CrossCountry Mortgage will conduct a credit inquiry to determine your current credit score. Many borrowers prefer to compare rates from multiple lenders to determine their best value.

CrossCountry Mortgage supports that decision, but remember that each pre-approval application will result in a hard credit inquiry. To minimize the impact on your credit score, try to group your applications within the same 30-day window.

You’ll receive a pre-approval letter in roughly three business days. Be on the lookout for messages from your mortgage lender in case they need clarification. Once you have the letter, you’re free to start shopping and sharing your pre-approval letter with sellers and their real estate agents.

That’s it!

Pre-approval can be an extraordinarily valuable step toward purchasing a home. CrossCountry Mortgage makes the process easy. Contact our team today to get started on your journey, and let us make your dream home a reality.

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Get Pre-Approved

How far in advance should I get pre-approved for a mortgage?

Mortgage pre-approval lasts for 60 to 90 days, so only apply for pre-approval once you’re ready to start making offers on a house. If you’re simply seeking to determine your price range, you might start by applying for pre-qualification.

Yes! Mortgage pre-approval will give you a clear picture of your purchasing budget. Additionally, sellers and real estate agents may show preference to buyers who have an official pre-approval letter, which can give you an edge in a fast-moving market.

No. Mortgage pre-approval is designed to be accurate but not binding. Your final mortgage will depend on a separate underwriting process, at which point your loan amount, rates, and terms will be locked in.

Yes. Each time you apply for pre-approval, your lender will conduct a hard inquiry into your credit history. This can temporarily lower your score by a few points, which is why it’s best to group your pre-approval applications into the same 30-day period to minimize the impact on your credit score.

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Start your journey to homeownership with a quick and easy pre-approval.

Get Pre-Approved