Pre-qualified vs. pre-approved
Pre-qualified
A quick estimate based on what you tell the lender about your income, debts and savings. Minutes, not days. Good for a first look at your budget.
Pre-approved
The lender checks your credit and verifies your income and assets with documents. You get a letter that says how much you can borrow. This is the one sellers want to see with your offer.
What you need to get pre-approved
Have these ready and it goes fast.
Self-employed? Expect to show two years of tax returns and a year-to-date profit and loss statement.
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Photo ID for everyone on the loan.
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Income proof: recent pay stubs and two years of W-2s or tax returns.
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Bank statements for the last two months, all pages.
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Debts: car loans, student loans, credit cards and any child support.
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Down payment source: savings, a gift letter, or down payment assistance.
Five ways to get a better pre-approval
- Check your credit first. Fix errors before a lender pulls it.
- Pay down card balances. Lower balances can help your score and your debt ratio.
- Do not open new credit or buy a car until after you close.
- Keep your job steady. Changing jobs mid-purchase can delay approval.
- Compare offers. Rate and fees matter. Ask each lender for a Loan Estimate.
AXEN Realty works with NEXA Mortgage, an affiliated lender. You never have to use an AXEN-affiliated lender. Compare lenders, and ask your agent for the written Affiliated Business Arrangement Disclosure before you choose.
Pre-approval questions
Does getting pre-approved hurt my credit?
A pre-approval usually includes a credit check, which can lower your score a few points for a short time. Credit scoring models generally count several mortgage checks within a short shopping window as one.
How long does a mortgage pre-approval take?
Pre-qualification can take minutes. A full pre-approval often takes one to three business days once the lender has your documents.
How long is a pre-approval good for?
Most pre-approval letters are good for 60 to 90 days. Your lender can update it if you are still shopping.
Is a pre-approval a guarantee of a loan?
No. Final approval depends on the home you choose, the appraisal, and your finances staying the same until closing.
Do I have to use AXEN's lender?
No. AXEN Realty works with NEXA Mortgage, an affiliated lender, but you can use any lender you choose. Ask your agent for the written Affiliated Business Arrangement Disclosure.
Get Pre-Approved Now
NEXA Mortgage, LLC
5559 S Sossaman Rd, Bldg 1 Ste 101 Mesa, AZ 85212
602-344-9333
Submit concerns or questions
through our contact form.
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An Equal Housing Lender
NMLS ID#: 1660690
www.nmlsconsumeraccess.org
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