A pre-approval differs from Pre-qualification in that it is a guarantee of a loan based on confirmation of your financial status, credit history and the other factors your lender uses for loan evaluation.

Armed with a pre-approved loan, you’ll have an advantage in the marketplace.  By knowing how much capital you have and the maximum you’ll be able to borrow, you can narrow your shopping focus to a particular price range.  You're a virtual cash buyer - it's like shopping for a home with the money in your pocket.

When you find your dream home, you can present the seller with your pre-approved loan document, showing them that not only are you serious about buying their house, but you’ve already been pre-approved for financing. It could make the difference between getting the house you want or watching some other bidder step in with a pre-approved loan and snatch that house away.

Here’s what you’ll need:

• Name, current address, social security number
     
• Name(s), and work number(s) of employer(s) for past two years

• Monthly income for you and your co-borrower (most recent pay stub(s) with year-to-date income) includes bonuses, commissions, and overtime income for the past two years (this information is on your tax return).
  
  
• If you are self-employed, you will need the last two years' tax returns for the type of business you own: Sole Proprietorship (Schedule C), Partnership (Form 1065), or Corporation (Form 1120 or 1120s). In addition, the last two years' personal tax returns (including K-1s).
  
  
• Documentation to support credit history problems (if applicable), which can be a written explanation of late payments, bankruptcy (petition and discharge papers), defaults, judgments and/or liens.