Why You Should Be Pre-Approved For a Home Loan

For real estate and loan professionals, it’s common to come across buyers who have decided to “skip” over the pre-approval process. But many agents will reject offers from buyers who don’t have a pre-approval letter from their banks. So what is a pre-approval letter, what does it cover, and why do you need one?

A pre-approval is when a lender will verify the borrower’s (buyers) information and documentation to determine how much it woul dbe willing to lend to that borrower, or buyer. They typically are the same documents that you would need to get a mortgage. This includes pay stubs, the previous two years worth of W-2’s, last two federal returns, two months’ worth of bank statements of all types of accounts, and your credit report.

While a pre-approval is not a loan commitment, it does help to speed up the underwriting and loan approval process.

And while it is typicall for a potential buyer to believe that they quality for a certain mortgage based on what a neighbor, friend, or relative with a similar credit profile bough, it’s not always correct. Getting pre-approved before you shop for a loan allows you time to fix any unexpected errors on your credit report.

To find out more information about the pre-approval process, or to get pre-approved, contact Stephen Nissou today!  619-250-4541

Your Local San Diego Real Estate Expert,


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