What is a Pre-Approval?

  A pre-approval is a letter written on an individual's behalf by a lender or broker. The letter explains that upon reviewing an individual's finances, they are inclined to loan a specifiic amount to that individual to purchase a home.


When should I get pre-approved?

It is a favorable idea to get pre-approved for a loan when first starting to shop for a home.


Pre-approval displays to an individual which homes are affordable. It helps one submit an offer quicker. Bank-owned property (REO) require pre-approval in order to submit an offer.

How to Get Pre-Approved

Gather documentation proving financial readiness for a loan. Learn about different mortgage options. Locate a lender or broker. Working with a lender, examine home buying and financial goals. Fill out a loan application. Obtain the pre-approval letter from your lender.


Pre-Approval Documentation

List of documents and information you'll need:

Work History : W2 forms, Pay stubs, Personal tax returns

Credit Rating and History : Credit Report

Total Debt : Names, balances, and account numbers for all: Student loans, Credit cards, Car loans, Store lines of credit, Other debt with recurring monthly payments

Down Payment : Two month's bank statements for savings and checking accounts

Investements and Other Assets : Two months of statements for bonds, stocks, or other investement accounts. Retirement account statements - 401(k), IRA

Residence History for Previous Two Years :

For current homeowners -- Your lender will investigate if you are current on your mortgage, if there are no problems with the current home to interfere with the purchase of a new home, confirmation of the home's value, and plans for selling or leasing the property.

For renters -- Residence history for the past two years which includes addresses, dates of move-in and move-out, rent amounts, and landlord contact information. The lender may communicate with landlords to validate the history of consistent and prompt payment of rent.

Contact Info
Hanu Reddy Realty

Hanu Reddy Realty

16251 Laguna Canyon Rd. #100
Irvine  California 92618

Office: 949-450-8800 CA BRE Lic. 00873745 Email:

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