Understanding The Pre-Approval Process

Understanding The Pre-Approval Process

Jun 22, 2022

So much is changing in the housing market, and understandably, many of our buyers have questions about the mortgage pre-approval process and other financing issues. You may fear you’ll miss out on the home of your dreams because interest rates have gone up by the time something is available. Or maybe you’re wondering if you should hold out a bit longer in case rates dip again.

Before you start searching listing websites and attending open houses, your first stop should be with a lender. Stone Martin Builders has a list of approved lenders that can help answer your specific questions about the whole financing process. Working with a lender will help you understand how much you can afford and how much you’re qualified to borrow. This is known as getting pre-approved. A pre-approval letter is a document supplied by a lender that states the maximum amount the lender is willing to lend you based on key criteria.


How To Get Pre-Approved

Our lenders make it simple to get pre-approved. You’ll start by filling out a loan application. Completing the application is easy and only takes about 10 minutes online. After the application, they also like to see a few documents to verify some important items. These documents will help evaluate your financial ability to make payments on time. Specifically, they look at the “Four C’s”:

  • Capacity: Your current and future ability to take on a monthly mortgage payment.
  • Capital: Your available money and savings, and other assets that you could sell fairly quickly for cash.
  • Credit: Your history of paying bills and other debts on time.
  • Collateral: The type of home that you are interested in purchasing.

After evaluating your “Four C’s”, they will provide you with a pre-approval letter stating how much they will potentially lend you. Though our buyers are not obligated to use one of our approved lenders, doing so may qualify them for credit toward their closing costs.


Why Should You Get Pre-Approved?

There are several benefits to getting a mortgage pre-approved:

  • It shows you are a serious buyer. A pre-approval letter lets your real estate agent and the homebuilder know that you are ready to purchase and have borrowing power.
  • It makes it easier to shop for a new home. A pre-approval letter helps both you and your real estate agent better understand your price range.
  • It strengthens your offer. A pre-approval letter can help you stand out from other buyers and give you an advantage in getting your offer accepted.


If you are scheduled for an appointment with our sales team, get pre-approved in an effort to speed along the process. Check out our list of lenders directly to answer any of your other financing questions.

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