Many sellers request a pre-approval letter before considering an offer, particularly in competitive markets. In the past, many buyers opted for the easier-to-obtain pre-qualification letter. In competitive markets, a full pre-approval can help buyers submit a stronger, more prepared offer. The letter must state the lender has not only verified your credit, but your income and assets as well.
Get StartedMany buyers assume they will qualify for the home their neighbor, co-worker, or friend bought. There are many factors, however, that go into determining what home you can afford.
However, being proactive is crucial.
It is estimated there are over 40-million errors on credit reports in the US at any given time. Give yourself time to fix any unexpected issues that may arise during the pre-approval process. Better yet, be proactive and start investigating your own credit score and disputing errors months before you apply for a mortgage.
Get Started
A pre-approval differs from a pre-qualification.
In a competitive market, you need all the help you can get. Nothing is worse than finding the perfect house, and missing out because you weren’t pre-approved and prepared to make a solid offer. Don’t window shop for a home until you get pre-approved by a reputable lender like Sammamish Mortgage.
Getting pre-approved for a mortgage before you start house hunting is beneficial for several reasons:
| Note: A pre-approval may be processed with a soft-pull credit report, which has no impact on your credit score. However, once the property is under contract, a hard pull is required as a loan cannot be closed with a soft pull. A hard pull will impact your credit score. |
The process of buying a home can be stressful. Getting pre-approved ahead of time will go a long way in making the process more enjoyable. Providing more documentation upfront decreases the chances of unexpected surprises or a last minute scramble to provide the necessary documentation.
The documents needed for pre-approval are many of the same documents required during the actual loan process. While a pre-approval is not a loan commitment, it is extremely helpful in speeding up the approval process once an offer is accepted and a closing date is determined.
Once your home purchase process is moving forward. Final loan approval remains subject to underwriting, property review, updated documentation, and satisfaction of all applicable loan conditions.
Get Started
Sammamish Mortgage offers free pre-approvals. There is no application fee or fee of any kind to get pre-approved. Click the link below to get started today.
If you’re a buyer who’s ready to find a new home in Washington, Oregon, Idaho, California or Colorado, Sammamish Mortgage can help. We’re a local, family-owned mortgage firm based in the Washington area and serve the entire state, in addition to the broader Pacific Northwest region including Oregon, Colorado, California and Idaho.
Please get in touch with us with any mortgage-related questions or to get a rate quote.
Get StartedYes, it triggers a hard inquiry, which can cause your credit score to dip slightly, though only temporarily. While a soft pull may be done with a pre-approval (which has no impact on your credit), in order to close the loan, a hard pull is needed, which will affect your credit score.
It can take anywhere from 1 to 10 business days, depending on your lender, your financial situation, and how quickly you submit documents.
Typically, you’ll need the following documents to get pre-approved:
Most lenders prefer credit scores in the mid-600s or higher. That said, lower scores may still qualify if other factors are strong, like your income and down payment. However, a lower credit score could mean higher interest rates.
The amount you can get pre-approved for depends on your income, debts, credit score, and down payment. Lenders use your debt-to-income (DTI) ratio to determine how much you can borrow for a mortgage, which is a comparison of your monthly debt and monthly income. Generally speaking, your total DTI ratio should be no more than 45% to 50%.
Yes, many lenders offer rate holds for 60 to 130 days during the pre-approval period. However, you’ll need to have a property specified with a mutually signed contract in place to lock in a rate.
Yes, you can still be turned down if your financial situation or credit score change, or the property doesn’t meet lender standards.
Avoid applying for new credit, switching jobs, or missing bill payments, all of which can sabotage your final approval.
Pre-approvals are usually valid for 60 to 130 days, depending on the lender. If it expires, you may be able to renew it.
Our loan officers are ready and waiting to help you apply for your home loan.
We put YOU first. We are committed to getting every client the most effective possible deal every single time.
Sammamish Mortgage offers transparent mortgage pricing and a variety of home-loan options.
Fast and efficient, we close most of our loans quickly and on time.
We offer a variety of loans. Sammamish Mortgage will find you the loan that is right for you!!!
Get Started
Learn more about the people behind Sammamish Mortgage
Whether you’re buying a home or ready to refinance, our professionals can help.
Mortgage Support — 24/7
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
