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1722 Westwood Blvd #200 Los Angeles, CA 90024

Get Pre Approved

Documents You Need to be Pre-Approved

Because a pre-approval verifies via third party your income, assets and credit standing, you will be asked to provide copies of certain documents when you submit your loan application. You will need to provide:
Your most recent pay check stubs covering a 30-day period

Your last two years of W2 forms

If self-employed, your last two years of personal and federal income tax returns along with a year-to-date profit loss statement

Bank and investment statements for the accounts to be used for your purchase

Authorization to pull a credit report and credit scores

How Your Pre-Approval Amount is Determined?

Your pre-approval amount is determined by comparing your total monthly credit obligations, including a new mortgage, with your gross monthly income. This includes an auto loan payment, credit card and student loan payments and other credit accounts that appear on your credit report.
To make sure you have enough funds available to close, lenders will review your bank statements showing you have enough funds to close plus some extra left over referred to as cash reserves.
Your credit report will be reviewed along with credit scores. After income, assets and credit is reviewed, the lender will use current market rates to arrive at a monthly payment and qualifying loan amount.

Pre-Qualification vs. Pre-Approval

So what’s the difference between a pre-qualification and a pre-approval? Simply put, the degree of verification. It used to be that a pre-qualification letter issued after a conversation or meeting with a loan officer was enough needed in order to start shopping for a home. Yet while a pre-qualification lets the buyers know a price range they can start shopping for, sellers want to know that your lender has not only provided you with a price range but that your income, credit and assets have been reviewed and approved by your mortgage company
When presenting an offer to buy a home, sellers want to see a pre-approval letter, not a pre-qualification letter. If there are two competing offers on a home and one offer has an accompanying pre-approval letter and the other does not, the nod will go to the offer with a pre-approval attached.