Connecticut: How to get a Mortgage Pre-Approval

One of the most confusing processes in the mortgage process today is a pre approval. This is the process used to qualify a borrower when they are looking to buy a home. The process can help determine up front whether you are able to buy or should wait.

Step 1 In the pre-approval process is to have the lender pull your credit. What they will look for is credit history usually 2-3 trade lines (credit cards, car loans, student loans, etc.) that have been open for a 1-2 years and have been paid on time. Your lender will also look for any bad credit that could hurt your chances of being approved.

Step 2 Your lender will want current paystubs, w-2’s and tax returns to verify what income can be used to qualify you for your loan. They will also check for any expenses on tax returns that will have to consider such as un reimbursed items on a tax return.

Step 3 Assets will be looked at to make sure there are enough verifiable assets that can be used as a down payment for your property. If you are going to be using a “gift” from a relative they will want to know who it is giving you the money and if any re-payment is expected from that person.

Step 4 With this information the lender will run the application with the above information through and Automated Underwriting System or AUS. This will produce an approval that will allow the company to give you a Pre-Approval.

They will be able to tell you how much you are able to borrow and what price ranges you should be looking in.

You will be able to use this pre-approval to show your realtor and buyers to let them know you have been vetted buy a mortgage company or a bank and your are qualified to buy the home.

Craig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS 398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com