February 8, 2024
Who we are
Susie Chow is Tomo’s lead writer based in Atlanta, Georgia. We present our first Tomo’s Guide to Home Buying, broken into five sections, as a tool for all homeowners. Susie is also a contributing writer for Eater Atlanta, and has written for global brands, Shangri-La Hotels & Resorts, Airbnb, Uber, and many more.
In This Section: How to Get Pre-Approved for a Home Loan
- What is mortgage pre-approval
- Three main types of mortgage pre-approval
- What documents are needed for pre-approval
- If you’re pre-approved, will you get the loan?
- Mortgage pre-approvals—key takeaways
If you’ve begun navigating the exciting but often daunting path to homeownership, you’re probably wondering how to secure mortgage pre-approval. In Part 2 of Tomo’s Guide to Home Buying, we’ll walk you through the critical role of pre-approval in the home-buying process, delineating the various types available, to help you get pre-approved quickly and easily.
Fast track to Tomo’s Pre-Approval process here.
What is Mortgage Pre-Approval?
Getting pre-approved for a mortgage is a crucial step in the home buying process because it signifies that a lender has preliminarily assessed and endorsed your financial ability to borrow up to a certain amount, subject to final verification and property appraisal. Pre-approval provides agents with proof that you can afford the homes you’re interested in, making your home search more efficient and focused.
Tomo Tip: A Tomo underwritten pre-approval gives everyone confidence in what you can afford. It’s not just a loan officer’s opinion of your eligibility; it’s the underwriting team’s signoff on your application. We make the process a snap by syncing accounts to instantly verify your information, letting us pre-approval you in a fraction of the time.
Three Main Types of Mortgage Pre-Approvals
Pre-Qualification: The Quick First Glance
Pre-qualifying for a mortgage is a fast process, usually taking 15-60 minutes. It’s based on self-reported information, so while it’s a quick way to gauge where you stand, it may not be the most accurate.
- Speed: 15-60 minutes
- Type of Credit Pull: None (borrower-reported)
Verified Pre-approval: Accuracy Matters
Verified pre-approvals take a little longer, ranging from 1-3 hours. This type of pre-approval involves a soft credit pull, which won’t affect your credit score. Lenders verify the information you provide, offering increased accuracy and a better understanding of your buying power.
- Speed: 1-3 hours
- Type of Credit Pull: Soft (this won’t affect your credit score)
Underwritten Pre-Approval: The Gold Standard
Underwritten pre-approvals are the most comprehensive. They’re essentially a complete mortgage application but aren’t tied to a specific home. The time taken varies based on your financial situation, but with Tomo’s streamlined process, it’s now quicker than ever. This approach offers an in-depth view of your finances and the amount of mortgage you can be approved for.
- Speed: Varies based on financial complexity
- Type of Credit Pull: Hard (affects your credit score, but minimally)
What Documents are Needed for Pre-Approval?
Securing a mortgage pre-approval requires a collection of important financial documents, providing lenders with a comprehensive snapshot of your economic standing. These typically include recent pay stubs, tax returns, bank statements, proof of assets and debts, and your credit report, ensuring a thorough evaluation of your capacity to afford a home.
Tomo Tip: If you are reading this then you should already have started to gather your financial documents. If not, start gathering, and to stay organized kept everything in one financial binder.
If You’re Pre-Approved, Will You Get the Loan?
A mortgage pre-approval is a significant indicator of your creditworthiness but does not guarantee final loan approval. The final decision hinges on a detailed underwriting process and a satisfactory appraisal of the property, aligning with the lender’s criteria and your continued financial stability.
Mortgage Pre-Approval—Key Takeaways
- Mortgage pre-approval is essential for serious home buyers.
- Choose from pre-qualification, verified pre-approval, or underwritten pre-approval.
- The more detailed the process, the more accurate your pre-approval.
- A pre-qualify mortgage is a great starting point, but consider verified or underwritten for greater accuracy.
Understanding how to get pre-approved for a mortgage is key to kickstarting a successful home buying journey. Whether you start with a quick pre-qualification or go straight for an underwritten pre-approval, each step will bring you closer to your dream home! And remember, Tomo — the world’s first complete home buying service — is here to guide you every step of the way.
Get pre-approved in a matter of minutes with Tomo’s underwritten pre-approval process.
What’s Next?
Part 3: Things to Look for When Buying a House
- Tomo’s house hunting checklist
- How to find a house. Needs vs. wants
- Assessing the market: setting realistic expectations
- Partnering with the right real estate agent
- What to look for when touring a house
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