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Mortgage Pre-Approval vs Pre-Qualification

Understand the critical difference. Bergen County requires pre-approval for serious offers.

Get Pre-Approved Today

Pre-Qualification

What It Is:

Informal estimate based on self-reported information. No documentation verified.

Requirements:

  • • Phone/online conversation
  • • Self-reported income
  • • Soft credit inquiry (no impact)
  • • No documents required

Timeline:

5-10 minutes

Validity:

Estimate only, not binding

Strength:

Weak - Sellers don't trust it

Pre-Approval

What It Is:

Verified conditional commitment. Lender confirms you qualify for stated amount.

Requirements:

  • • 2 years tax returns
  • • 30 days pay stubs
  • • 2 months bank statements
  • • Hard credit pull (-5 points temp)

Timeline:

1-2 business days

Validity:

90 days (conditional on property)

Strength:

Strong - Required for offers

Why Bergen County Requires Pre-Approval

Competitive Market

Bergen County median $749K homes receive multiple offers. Sellers only consider buyers with verified pre-approval.

Reduces Fall-Through Risk

Pre-approval means lender verified income/assets. Less likely buyer financing falls through after inspection.

Negotiation Power

Pre-approved buyers can negotiate better terms. Sellers more willing to accept lower offers from verified buyers.

Faster Closing

Pre-approval front-loads underwriting. Can close in 30 days vs 45-60 days with pre-qual.

Documents Needed for Pre-Approval

W-2 Employees:

  • • 2 years federal tax returns (all pages)
  • • 30 days recent pay stubs
  • • 2 months bank statements (all accounts)
  • • Photo ID (driver license)
  • • Credit authorization form

Self-Employed:

  • • 2 years personal + business tax returns
  • • YTD profit & loss statement
  • • Business bank statements (2 months)
  • • CPA letter (sometimes required)
  • • Same ID and authorization as W-2

Get Pre-Approved in 24 Hours

Work with Jimmy Joseph MBA to get your verified pre-approval letter for Bergen County home shopping.

Start Pre-Approval

NMLS #1577754 | (718) 812-7798