Learning About Mortgage Pre-Approval

A good mortgage company helps clients with all the steps of a detailed process, and at City Creek Mortgage, we’re here to do that for you. Our brokers will take you through every bit of the process, offering advice along the way.

For many people, one of the most important of these processes is the mortgage pre-approval process. What is this, and how can going through it benefit you? Let’s take a look.

Pre-Approval Basics

Pre-approval involves a thorough investigation of your financial profile by a lender – this will include a comprehensive credit check, plus a detailed look at your income and related expenses. The purpose of this check is for the lender to gain confidence that you’ll be able to meet all the financial requirements of a given mortgage rate.

It’s important to note that pre-approval is not the same thing as pre-qualification. Pre-qualification is a much less formal procedure, mostly meant to get a very general introduction to the lender and loan options. Pre-approval involves much more detail and commitment, and it’s rare for someone to be pre-approved but then later denied for a final application.

Pre-Approval Preparation

Before a pre-approval check, your goal should be to get all your finances fully in order to the best of your ability. You can use online tools to check your credit score (there are tools that allow you to do this for free, and without raising the score by checking it). A lender needs a thorough understanding of your finances, so you should have one too.


You’re going to need a few documents to present to the lender before you can become pre-approved:

  • Personal information: At least one form of identification, plus Social Security information for the lender to run a credit check.
  • Income information: Things like pay stubs, tax returns and W-2 forms for the past two years will be required. If you have any additional sources of income, these will need to be documented as well.
  • Assets: There are some financial assets that don’t count as claimed income, such as certain investments, savings or personal gifts from family or friends. However, you’ll still need to present these holdings for pre-approval.

Want to learn more about pre-approval, or any of our other mortgage services? Speak to the brokers at City Creek Mortgage today.

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