Home financing
Mortgage pre-qualification and pre-approval
Pre-qualification gives you a directional view of price range and monthly payment using stated income and a soft credit review where available. Pre-approval adds verified income, assets, and a credit authorization so sellers and agents take your offer seriously.
Pre-qualify vs. pre-approve
Pre-qualification is a conversation and light verification: you share employment, income ballparks, and liabilities. Sky returns illustrative ranges and flags obvious constraints (self-employment seasoning, large deferred comp, or recent credit events).
Pre-approval requires application data, authorization to obtain a tri-merge credit report, and documentation such as W-2s, pay stubs, or business returns. You receive a conditional letter with maximum loan amount, product type, and expiration—subject to appraisal and final underwriting.
Credit inquiries
Multiple mortgage inquiries within a short shopping window are often scored as one event. Your banker explains timing before you authorize a hard pull.
What to prepare
Gathering these items shortens the path from conversation to a clean pre-approval letter.
- Identity and authorization Government-issued ID and signed credit authorization for all borrowers on the note.
- Income trail Recent pay stubs, two years of W-2s, or business returns and K-1s for self-employed filers.
- Asset statements Two months of liquid accounts for down payment, closing costs, and required reserves.
- Property context Target ZIP codes, occupancy plans, and whether you need a contingency on an existing home sale.
Common questions
Does pre-approval guarantee closing?
No. Final approval depends on appraisal, title, insurance, and any changes to your employment or credit before funding.
How long is a pre-approval letter valid?
Typically 60–90 days depending on program. Sky refreshes income and asset documentation if your search extends beyond that window.
Can I switch products after pre-approval?
Yes, but payment and reserve requirements change. Your banker re-runs pricing and disclosures when you move between fixed, ARM, or jumbo structures.