You’re Pre Approved for a Mortgage – Now What?

Estimated reading time: 6 minutes

Getting pre-approved for a mortgage is an exciting milestone. It means a mortgage lender has reviewed your finances and determined an estimated loan amount you may qualify to borrow, subject to underwriting and property approval. But while pre-approval is a big step forward, it’s not the finish line. In fact, it’s just the beginning of the homebuying journey.

So what happens next? From house hunting to underwriting, there are several important steps between pre-approval and receiving your new home’s keys. Let’s walk through what you can expect and how to confidently move forward.

What is Mortgage Pre-Approval?

Mortgage pre-approval occurs after a lender reviews the documentation related to your income, assets, credit, and debts to determine how much you may qualify to borrow, subject to underwriting and property approval. A pre-approval letter indicates that you appear to qualify for a specific loan amount, based on the documentation your lender reviews. It’s a more precise look at your mortgage readiness when compared to a pre-qualification because you’re providing your lender with more information.

How Long Does Pre-Approval Last?

At McGlone Mortgage, your pre-approval letter is valid for approximately 90 days. The timeline is based on the date of expiration for your oldest piece of submitted documentation. This gives you approximately 3 months to go under contract before updated documentation may be required.

For example, let’s say you submit proof of income on January 1. You then submit your most recent pay stubs on January 2. The 90 days for your pre-approval would begin when your proof of income was submitted. This makes its expiration date April 1.

Your pre-approval letter will also outline the expiration date.

What Happens if I Can’t Find a House in That Time?

Sometimes, even the best laid plans have mishaps. If a complication occurs during the home search, such as changes to your income and credit or a home you’re interested in goes under contract, be open and honest with your mortgage lender and homebuying team about what has happened.

Chances are the professionals you’re using during the mortgage process will have a solution or advice to provide. However, they can’t help you achieve success if they don’t know what obstacles you’re facing.

If something happens and you require a new pre-approval letter, contact your Loan Originator directly. Your lender may just need to see updated documentation to issue a new letter. This can easily be done through our mobile app, Go McGlone.

What Are My Next Steps After Pre-Approval?

There are several steps that occur after you receive your pre-approval letter.

Since your pre-approval letter will outline the loan program you may qualify for, as well as a maximum interest rate, loan amount, maximum real estate taxes, and closing costs, you can use this information to house hunt within your budget. For the most accurate results, be sure to factor in property taxes, insurance, HOA fees, and maintenance costs.

Find a Real Estate Agent You Trust

Real estate agents are licensed professionals that assist buyers and sellers with real estate transactions. As your Loan Originator is there to help you stay on track and assist during the mortgage financing process, a real estate agent guides you through the homebuying process.

When you choose a real estate agent for your homebuying journey, they will help you prioritize your requirements for a property against your “nice-to-haves,” help you house hunt, and maintain communication with your Loan Originator to ensure you’re on the right track as you prepare for your loan application.

House Hunting

Your real estate agent can help you find properties that match your needs. Along with the typical house hunting websites you may use, real estate agents can leverage properties listed on multiple listing services (MLS). MLS databases are private catalogues of listed homes that are created for, maintained by, and used by a diverse system of real estate professionals.

When you find a property you like, your real estate agent will help you schedule a showing so you can see the property in person. Then, when it’s time to make an offer, you can leverage your pre-approval letter and your real estate agent’s insights regarding appropriate negotiations and offers.

Prepare for Underwriting

While pre-approval can help jumpstart your mortgage application, underwriting will still have to verify your information to ensure your conditional approval still applies. Be sure you have easy access to the documents that underwriting and your lender will ask for, such as your:

• W-2 forms
• Bank statements
• Tax returns
• Paycheck stubs

These documents can be uploaded directly to your loan file through our Go McGlone mobile app.

Maintain Healthy Finances

Your finances, credit, and assets are closely examined throughout the mortgage process, even up until closing. It’s important that you maintain healthy credit and keep your finances consistent.

Lenders typically require recent bank statements to verify your available funds. Opening new credit accounts or moving large sums of money may require additional documentation. Large deposits, new accounts, or significant financial changes before closing may impact your closing timeline.

Continue making payments on your existing debts on time and avoid taking on new debt, if possible.

By Your Side, even at the Closing Table

There’s a lot to navigate when it comes to buying a home. That’s why choosing a mortgage lender who provides clear guidance and steady support can make all the difference.

When you connect with us, your Loan Originator will walk you through each step of the home financing process so you can move forward with confidence. Ready to get started?