How to Get Home Loan Pre-approval

A loan for a median priced home in Long Beach of $245,000 is quite different than a median priced home in Palos Verdes Estates of $1,482,500 (data per Los Angeles MLS). Typically a 30-year loan is given, and in today’s market a fixed rate loan is most likely chosen over a variable rate loan.

The pre-approval letter is given by a lender to document the loan details for a loan you would qualify for.

– Complete loan application

– Profit and Loss Statements (if you are self-employed)

You don’t have to pay for a pre-approval, most lenders do not charge a fee and they are excellent lenders.

It is wise to start this pre-approval mortgage loan process well in advance of looking for your Los Angeles home. Credit reports sometimes contain inaccurate information, which may affect qualifying for the loan or being placed in a loan program that charges higher interest rates than necessary. The buyer should get a copy of their own credit report prior to starting this pre-approval process.

The mortgage lender will provide the potential borrower a pre-approval letter up to a specific loan amount.