How to Get Pre-Approved for a Mortgage Quickly: 5 Steps to Be Ready

In many straightforward situations, the pre-approval process can move very quickly when I have the information I need. Here's how to make that happen.

Step 1: Complete the Mortgage Application

The application gives me the basic information needed to evaluate your loan. You'll provide information such as:

• Employment and income
• Assets
• Current housing and debts
• Property ownership
• Credit history
• Desired loan amount or price range

Be accurate. The purpose isn't to make the application look perfect. It's to give me enough information to identify the best path forward. There are often several ways to structure the same mortgage.

Step 2: Authorize Credit

Your credit profile helps determine:

• Available loan programs
• Interest-rate pricing
• Mortgage-insurance requirements
• Debt obligations
• Potential qualification issues

A lower credit score doesn't automatically mean you cannot buy a home. Depending on the circumstances, FHA, conventional, VA or Non-QM financing may still provide options. And sometimes a relatively small improvement to a credit profile can materially improve available financing.

Step 3: Provide Income Documentation

For a typical W-2 employee, I may need documents such as recent pay statements and W-2s. But not everybody earns money the same way. I regularly work with:

• Salaried and hourly employees
• Commissioned employees
• Self-employed business owners
• Real estate investors
• Retirees
• Borrowers using assets or alternative income documentation

If you're self-employed, don't assume your tax returns tell the entire story. There may be conventional or bank statement loan programs worth reviewing.

Step 4: Provide Asset Documentation

Assets can be important for several reasons. We may need to verify money for:

• Down payment
• Closing costs
• Reserves
• Earnest money deposit

Depending on the loan, acceptable funds might come from personal accounts, investments, gifts or other permitted sources. If you're moving significant amounts of money around while preparing to purchase, talk with me first. Sometimes transferring funds unnecessarily can create additional documentation requirements.

Step 5: Determine Your Comfortable Payment

This is the step I think too many lenders skip. A pre-approval shouldn't simply say: "Congratulations. You qualify for $600,000."

What I want to know is:

• What happens to your payment at $450,000, $500,000, $550,000 and $600,000?
• How much cash would you need at each level?
• What happens if the property has a higher insurance premium?
• What happens if there's an HOA?
• Could seller concessions change the equation?

That's how you turn a pre-approval into an actual home-buying strategy. Use our mortgage payment calculator to model different scenarios.

Pre-Qualified vs. Pre-Approved

A basic pre-qualification may be based primarily on information a borrower provides. A stronger pre-approval generally involves reviewing supporting financial information and credit before you're under contract.

When you're competing for a property, I want your financing reviewed as thoroughly as reasonably possible beforehand. It gives you more confidence when making an offer and reduces the likelihood of discovering an avoidable financing issue after you're under contract.

What If Your Situation Is Complicated?

That's exactly when getting pre-approved early becomes more important. I regularly work with borrowers who have situations involving:

• Self-employment
• Investment properties
• Multiple financed properties
• Recent credit events
• Variable or retirement income
• Trust ownership
• Non-traditional income documentation

I'd rather identify a potential issue before you find the perfect home than after you've signed a contract. Learn more about Scott Kepler and the types of borrowers he works with throughout Florida.

Florida also offers down payment assistance programs that may reduce the cash needed to close — worth discussing during the pre-approval process.