How to Get Pre-Approved for a Mortgage in 2025

What is Mortgage Pre-Approval?

Pre-approval is a lender's written commitment stating how much they're willing to lend you based on a thorough review of your financial situation. Unlike pre-qualification (which is just an estimate), pre-approval involves:

Verification of your income and employment
Review of your credit history and score
Analysis of your assets and debts
Written commitment from the lender

Documents Needed for Pre-Approval

W-2 Employees

• Last 2 years W-2 forms
• Most recent 30 days pay stubs
• Last 2 months bank statements
• Government-issued photo ID
• Social Security number

Self-Employed

• Last 2 years personal tax returns
• Last 2 years business tax returns
• Year-to-date profit & loss statement
• Last 2 months business bank statements
• CPA letter (sometimes required)

5 Steps to Get Pre-Approved

Gather Your Documents

Collect all required documentation listed above. Having everything ready speeds up the process significantly. Organize documents in PDF format for easy electronic submission.

Choose Your Lender

Research lenders and compare rates. Local mortgage brokers often provide better service than big banks. CMG Home Loans specializes in Bergen County and offers personalized guidance.

Complete the Application

Fill out the Uniform Residential Loan Application (Form 1003). Be thorough and accurate - errors delay approval. Most lenders offer online applications that take 20-30 minutes.

Authorize Credit Check

Sign authorization allowing lender to pull your credit report. This is a hard inquiry but won't significantly impact your score (typically 5-10 points temporarily).

Receive Your Pre-Approval Letter

Within 24-48 hours, you'll receive a pre-approval letter stating your maximum loan amount. This letter is valid for 60-90 days and makes you a serious buyer in sellers' eyes.

How Long Does Pre-Approval Take?

Typical Timeline:

• Same day to 24 hours: With complete documentation
• 48-72 hours: If additional documentation needed
• 1 week+: Complex financial situations (multiple income sources, recent job changes)

CMG Home Loans: We typically provide pre-approval within 24 hours for complete applications.

Benefits of Getting Pre-Approved

Stronger Negotiating Position

Sellers take pre-approved buyers seriously. You're more likely to win bidding wars and negotiate better terms.

Know Your Budget

Understand exactly how much house you can afford. Avoid wasting time viewing homes outside your price range.

Faster Closing

Pre-approval front-loads much of the underwriting process. Close in 30 days instead of 45-60 days.

Lock Interest Rates

Many lenders allow rate locks during pre-approval, protecting you from rising rates during your home search.