Many are confused regarding the difference between getting pre-qualified for a mortgage loan and getting pre-approved. The pre-qualification process is simply an initial discussion about your financial position and what your mortgage options could be. A pre-approval is based upon verification of your assets and income, and can give you, your realtor, and any seller an accurate picture of what you can afford.
At MAK Financial, a pre-approval begins with:
- Pulling your credit report (you’ll need to provide your social security number);
- Reviewing your most recent paystubs to verify employment and income;
- Verifying assets via bank statements or other asset statements; and
- Verifying tax history with the most recent 2 years of tax returns.
At this point it’s also a good idea to come clean regarding any potential road blocks you may encounter during the approval process. Due to enhanced financial regulation, a seemingly endless amount of documentation is required. It’s better for all involved to mention any unusual circumstances at the start. Some items that may need to be addressed include:
- Unfiled taxes or extensions;
- Large, undocumented deposits;
- New job or anticipated job change.
Contact MAK Financial to discuss all your mortgage loan options using our pre-approval process or access our portal to get pre-approved.