Mortgage Pre-Approval

Mortgage Pre-Approval Service is a trusted mortgage bank serving clients in Colorado and the Denver Metro area with mortgage pre-approval. We work with homebuyers seeking financing for their home purchase.

At, we offer a mortgage pre-approval service that provides personalized assistance to clients in Colorado and the Denver Metro area. Our goal is to guide our clients through the lending process and help them understand important factors, such as interest rates, closing costs, and down payment options. We understand that buying a home can be overwhelming, so we’re here to provide support and guidance every step of the way.

Our mortgage pre-approval service aims to provide you with confidence in your home-buying journey. We understand that the lending process can be complex, but by working with us, you’ll have a better understanding of your budget limitations and clear expectations regarding interest rates, closing costs, and down payment options. This way, you can make informed decisions when searching for your dream home.

At, we’re here to make the mortgage pre-approval process as smooth as possible. We want to help you navigate through the complexities of financing your home purchase, so you can focus on finding the perfect place to call your own.

Contact us today to schedule a consultation.

What Is Mortgage Pre-Approval?

Mortgage Pre-Approval and Pre-Qualification are somewhat confusing terms whose definition depends on the company you are working with. Your goal is to get the most CLEAR and TRUTHFUL answer about the status of your loan inquiry and loan application as early in the process as possible.

Mortgage pre-approval is when a mortgage lender assesses a borrower’s creditworthiness and determines the maximum loan amount they can qualify for. To get pre-approved for a mortgage, borrowers usually need to submit their credit report, documentation of their income, and other relevant financial information. will make sure that you are fully aware of whether or not you have a Pre-Approval and how that will help you in the Real Estate market. You can start your Pre-approval process by filling out our contact form or calling us directly.

GET PRE-APPROVED to Buy a New Home

Get Pre-Approved to Buy a New Home

How Does Mortgage Pre-Approval Work?

A PRE-Approval is generally recommended before you begin shopping for homes, and it will help you tremendously in understanding your budget and the details associated with what to expect in terms of down payment and monthly payments.

To grasp how mortgage pre-approval works, it is important to understand how lenders assess creditworthiness and review documentation. Mortgage pre-approval involves a thorough evaluation of a buyer’s financial status and creditworthiness before granting them a mortgage loan. The process typically includes the following steps:

Assessing Creditworthiness: Lenders evaluate the buyer’s credit history, including their credit score, to determine their ability to repay the loan. They consider factors such as payment history, debt-to-income ratio, and length of credit history when making this assessment. A higher credit score indicates lower risk for lenders and increases the likelihood of loan approval.

Submitting Documentation: Buyers must provide various documents as proof of income, employment, and assets. These documents may include bank statements, tax returns, pay stubs, and other financial records. Lenders review these documents to verify the buyer’s financial stability and ability to make mortgage payments.

Not all homebuyers get Pre-approved before shopping for homes, but those that do are much more likely to get their offer to purchase a home accepted by a seller. A genuine Pre-approval indicates to a seller that you, as a buyer, are prepared and capable of buying the home from them.

Most mortgage pre-approvals are good for 90 days and they are subject to detailed conditions that will be discussed once that approval is issued.

We help you navigate this process, including providing you a pre-approval letter that you will be able to provide to your Real Estate Agent and/or the Seller.

Why Get Pre-Approved?

Getting pre-approved for a mortgage loan is a smart move for homebuyers. It gives you a clear understanding of your financial capabilities as you begin the house-hunting process. Pre-approval is different from pre-qualification because it involves a more thorough assessment of your creditworthiness. Lenders look at factors like your credit score, debt-to-income ratio, employment history, and financial documents such as income tax returns.

One major benefit of mortgage pre-approval is that it helps you determine your price range before you start looking at homes. By knowing how much you can afford to borrow, you can focus on properties that fit within your budget. This saves you time and prevents you from wasting energy on homes that are beyond your financial reach.

Another advantage of getting pre-approved is that it gives you more negotiating power. Sellers are more likely to take your offer seriously if you’ve already been pre-approved for a mortgage loan. Having a pre-approval letter shows sellers that you have the financial capability to follow through with the purchase.

Additionally, going through the pre-approval process allows you to explore different loan options and compare mortgage rates from different lenders. This helps you make informed decisions about which lender and loan product best suits your needs.

Requirements for Pre-Approval

To get pre-approval for a mortgage, you need to go through a thorough assessment of your creditworthiness. Lenders consider various factors, such as your credit score, debt-to-income ratio, employment history, and financial documents like income tax returns. Meeting the requirements for pre-approval involves considering the following:

  • Credit: Lenders evaluate your credit score to determine your ability to repay the loan. A higher credit score indicates a lower risk and may lead to more favorable loan terms.

  • Income and Debt: Lenders analyze your income and debt levels to assess your ability to make monthly mortgage payments. They calculate the debt-to-income ratio by dividing your total monthly debts by your gross monthly income.

  • Employment and Documentation: Having a stable employment history demonstrates financial stability and increases the likelihood of loan approval. You will need to provide documentation such as pay stubs, W-2 forms, or tax returns to verify your income.

Different loan types have varying pre-approval requirements. For conventional loans, you typically need a minimum credit score of 620 and a debt-to-income ratio below 43%. Government-backed loans like FHA or VA loans may have more lenient credit score requirements but still consider income and debt ratios.

When it comes to getting pre-approved for a mortgage, there are several factors that can have an impact. One of the most important factors is the borrower’s creditworthiness, which is determined by looking at their credit score and history. Lenders also take into account the borrower’s monthly income and debts to assess their ability to make mortgage payments on time.

Another important aspect is the type of loan that is being applied for. Conventional loans usually have stricter requirements compared to other loan programs. Lenders evaluate the borrower’s financial situation based on specific criteria such as their debt-to-income ratio, employment stability, and assets.

Additionally, lenders calculate the maximum loan amount that a borrower qualifies for based on their monthly income and expenses. This calculation takes into consideration factors like the proposed monthly payment, including principal, interest, taxes, and insurance (PITI).

It is important to note that pre-approvals are subject to underwriting approval during the mortgage process. It is crucial for borrowers to provide accurate information during the pre-approval stage to avoid any issues later on in the application process.

Obtaining a mortgage preapproval letter gives homebuyers confidence when making offers on properties, as sellers are more likely to accept offers from buyers who have already been pre-approved. Understanding what impacts pre-approvals can help borrowers navigate through this initial step of obtaining financing for their dream home.

Knowing when to get mortgage pre-approval can greatly impact the homebuying process.

Market conditions

  • Mortgage interest rates: Interest rates fluctuate regularly, so getting pre-approval at the right time can help potential buyers secure a lower rate.
  • Housing market trends: Being aware of current market conditions allows buyers to make informed decisions about the type of mortgage that suits their needs best.

Personal circumstances

  • Financial stability: It is essential for potential buyers to thoroughly assess their financial situation before seeking pre-approval.
  • Employment history: Lenders often require a stable employment history as part of the preapproval process.

Loan approval timeline

  • Time frame: The mortgage preapproval process typically takes between 24 to 72 hours, depending on the efficiency of the mortgage company.
  • Loan estimate: Pre-approvals provide potential borrowers with an estimated loan amount and terms, helping them determine if they can afford a specific property.

Getting pre-approved for a mortgage can take different amounts of time depending on a few factors. These include how efficient the lender is and how organized the applicant’s documentation is. The process can range from a few days to several weeks, so homebuyers need to understand the steps involved and how they can vary between lenders.

The time it takes for lenders to review the documentation and make a decision can vary. It depends on their internal processes and workload. Some lenders offer expedited services for an extra fee, while others may take longer due to high demand or strict underwriting guidelines.

Home Buying with Confidence acts as your Colorado home-buying tour guide. This process can be a bit overwhelming on your own. Working with an expert to navigate the loan details offers peace of mind.

Our team can help with the home-buying process, including:

  • Determining the pre-approval amount and obtaining a pre-approval letter.
  • Understanding interest rates, monthly payments, down payments, and closing costs.
  • Following the timelines and understanding the steps in the process.
  • Preparing you for other things you should expect in the process.

Understanding the Home Buying Process

Buying a new home is a complex process. Therefore, it’s essential to understand the steps involved to ensure you follow the most efficient and effective method.

At, we’re here to save you valuable time and money. We are EXPERTS at guiding you through the home-buying process!

How to Prepare for Buying a Home

  • Plan for your down payment – We will discuss your financial options to determine how much you can afford to put down and the amount you should put down. These two figures may not be the same.
  • Determine your maximum home price – Many homebuyers qualify for more than they may want to be able to afford to pay for a home. While this is a good problem to have, it also is a good time to discuss other parts of your financial plan so all things are considered. Family budget, retirement planning, educational savings, and other financial issues are all worth considering at this point.
  • Examine your credit – Some aspects of your credit score are long-term, but others reflect short-term actions. For these, you can take steps to increase your credit score quickly. We will discuss strategies to improve your credit score and give you tools to help with this process.
  • Understand your long-term financial plan – You may have different financial goals depending on your phase of life. Whatever your situation, we aim to help you see how homeownership fits into the big picture.

Next Steps After Loan Approval

Once you’ve determined the amount you are approved to finance, shopping for homes in the appropriate range becomes much easier for you and your Real Estate Agent.

Your Real Estate Contract should include every detail agreed upon by all of the interested parties. Sales Price, Closing Dates, other deadline dates, Earnest Money (funds deposited with the seller) are just a few of the details contained in most real estate contracts. Ensure you review the terms and deadlines to know when to have things accomplished and completed. Your real estate agent will help you track the timeline and follow through on the details.

One crucial aspect that the contract may address is mortgage pre-approval. This ensures that the buyer has obtained a pre-approval from a lender before proceeding with the purchase. Including clauses related to mortgage pre-approval provides clarity and protection for both parties involved.

It is crucial for buyers to carefully review all the terms regarding mortgage pre-approval in their contract to ensure they fully understand their obligations and rights as they continue with the home-buying process.

You will continue working with your lender throughout the process of your real estate transaction. There are many things happening throughout the course of your contract phase that your lender will need to know about and help you with. Maintaining excellent communication with your lender will be a big help during this phase.

his is one of the most effective “insurance policies” you will ever pay for. Having a professional Home Inspector go through the home you are purchasing will help you to discover things that you may not have looked for on your own. You don’t want to finalize the sale and then realize the home has significant issues, like a foundation crack or a faulty roof. An inspector will basically use a fine-tooth comb approach and if problems are discovered, you can negotiate with the seller to lower the price or make repairs.

Home inspection plays a crucial role in the process of buying a home as it allows for a thorough assessment of the property’s condition and helps identify any potential issues that could affect its value or safety. This objective evaluation provides buyers with important information to make informed decisions about their purchase.

There are several key reasons why home inspection is important:

  • Identification of structural problems is one of the main reasons to have a home inspection. A professional inspector can detect any structural issues such as cracks in the foundation, roof damage, or plumbing leaks that may require expensive repairs.
  • Another important reason is the detection of safety hazards. Home inspections uncover potential safety risks such as faulty electrical wiring, the presence of mold, or the use of asbestos materials, ensuring the safety of the occupants.
  • Inspectors also evaluate the major systems in the home. They assess the functionality and age of essential systems like HVAC, plumbing, and electrical to determine their lifespan and potential maintenance needs.

In most cases, the mortgage lender requires an appraisal report to verify the home’s value. Your lender will order this on your behalf. Then, they will review the information with you to ensure you understand the value of your new home.

Appraisal reports are important tools for home buyers as they provide an unbiased assessment of a property’s value. Licensed appraisers evaluate factors such as the property’s location, size, condition, and comparable sales in the area. The main purpose of these reports is to determine the fair market value of the property, which is crucial for mortgage pre-approval. Lenders require an appraisal report to ensure that the loan amount aligns with the property’s value.

Furthermore, appraisal reports can uncover any potential issues or defects with the property that may affect its value or pose risks for the buyer. This information assists buyers in making informed decisions during the home-buying process. By relying on these objective assessments, buyers can have confidence in their purchasing decisions and negotiate appropriate prices based on accurate information.

The lender submits the appraisal report and the rest of your loan file to their underwriter, who will finalize the approval of your loan. Once that is complete, you will review closing figures and make sure everything is ready for your closing. You and your lender should communicate frequently at this point to ensure you are well-prepared for your closing.

Depending on your situation, the lender may request additional documentation to address any concerns or provide clarity on specific financial aspects. This is nothing to worry about and is simply a way for the lender to ensure that everything is in order.

Once all the requirements have been met and your information has been thoroughly reviewed, you can move forward to the closing table for final loan approval. This is an exciting step towards achieving your homeownership goals.

The closing is a formality where you sign the paperwork and consummate the purchase of the home. Your lender and real estate agent will have covered almost every detail to make the closing smooth.

During the closing process, there are a few key things that need to be addressed. These include signing the purchase agreement, transferring ownership of the property, and paying any remaining costs and fees. Closings usually take about 1 hour. After the closing, most buyers are free to move into the new home, but the Possession date defined in the Real Estate Contract may say otherwise.

Pre-Qualification vs. Pre-Approvals

Credit Rating Assessment

  • For pre-qualification, lenders evaluate a borrower’s credit rating based on self-reported information provided by the borrower.
  • In the case of pre-approval, lenders conduct a thorough assessment of the borrower’s credit history, employment details, income, and debt-to-income ratio to determine their creditworthiness.

Mortgage Product Selection

  • Pre-qualification provides borrowers with an estimate of how much they may be eligible to borrow without specifying the mortgage product.
  • On the other hand, pre-approval gives borrowers a specific mortgage amount for which they are approved, allowing them to narrow down their home search within their budget.

Customer Service and Confidence:

  • While pre-qualification offers borrowers a general idea of their eligibility, it does not carry as much weight in negotiations or give buyers confidence during the home-buying process.
  • In contrast, a pre-approved buyer has an advantage in a competitive market as sellers perceive them as serious purchasers. It allows first-time homebuyers or those new to the market to navigate confidently through offers and negotiations.

Pre-Approval vs. Verified Pre-Approval

When it comes to getting a loan, there are two important terms you should know: pre-approval and verified pre-approval. While they both involve assessing a borrower’s financial eligibility, there is a key difference in how thorough the evaluation process is.

During pre-approval, lenders evaluate the borrower’s creditworthiness, income, and debt-to-income ratio. They do this by looking at the borrower’s credit report and score, as well as relying on self-reported income and estimated debt figures. This gives lenders a general sense of the borrower’s financial situation.

Verified pre-approval takes things a step further by verifying the information provided by the borrower through documentation. Lenders thoroughly review credit reports from all three major bureaus, require submission of pay stubs, tax returns, and other supporting documents for income verification, and use actual debts obtained from the verification process for calculating the debt-to-income ratio. This extra step gives lenders greater confidence in the borrower’s ability to repay the loan.

Verified pre-approval is particularly beneficial for borrowers with complex financial situations or those who anticipate potential issues during underwriting. It provides a higher level of assurance to both borrowers and sellers in real estate transactions.

Additionally, verified pre-approval can be advantageous when applying for certain types of loans, like jumbo loans or mortgages backed by Fannie Mae or Freddie Mac. These entities often have stricter requirements for documentation and verification.

Colorado’s Trusted Mortgage Bank is a great resource for a mortgage pre-approval. Our team guides clients through the home buying process using their proven knowledge, skills, and experience.

As a mortgage bank, we provide and service many types of mortgages to meet the needs of homebuyers. We prioritize personalized service and clear communication.

By choosing, you can have peace of mind knowing that you’re working with an experienced online mortgage lender who offers personalized service at affordable rates. Plus, with our expert guidance, you’ll have a better understanding of average homebuying costs, like down payments and closing costs.

You can count on us to manage the details and make the mortgage process as smooth as possible.

Don’t wait any longer – get in touch with today to take advantage of their trusted mortgage banking services. We’ll help you secure your mortgage pre-approval while providing professional assistance throughout the entire process. Please fill out a CONTACT FORM or CALL US any time to get started.

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Ted was so helpful and nice during this whole process! I am a first time home buyer and he answered every single question I had while walking me through it. He was great! Highly recommend!

Sheridan Prince