We encourage our clients to get a lender issued pre-approval letter as the first step in their Home Buying Process as this proves to potential sellers that they are serious.
You can either arrange this process with your Bank, a Private Lender, or a Mortgage Broker Agent and they will give you more information on the necessary steps and the timeline.
In order for a lender to issue a pre-approval letter to you, confirmation of your income, down payment, details of assets and liabilities as well as a credit report are required. After verification of finances, the lender determines the maximum loan amount that you qualify for and provides you with a preapproval letter that demonstrates you have sufficient funds to purchase a house.
Pre-qualification is based on you providing information to the lender without any of your credit information having been verified or confirmed. This will give you an idea of what amount you qualify for but it is only an estimate.