How to Get Your Mortgage Loan Approved

If you are looking to purchase a home, the biggest mistake you could make is not doing sufficient research before contacting a real estate agent. This implies that you have to be sure of your finances and their limitations. A simple way you could determine this is by getting a pre-approval letter.

We will walk you through the process of obtaining a mortgage pre-approval and, eventually, getting approved for a mortgage loan.

What is a mortgage pre-approval?

A mortgage pre-approval is the easiest way to be taken seriously as a buyer. Although it doesn’t guarantee a mortgage approval, it gives the buyer an upper hand in the market.

A mortgage pre-approval letter essentially proves that you have access to enough money to purchase a house. This document also gives you an idea of how much you can afford. It does not matter where you live but you can learn and practive maths if you have some online devices, for more info you can check: mathswatch.

How do you get pre-approved?

Like everything that has to do with finances, the pre-approval process consists of specific steps. For a lender to consider you for a loan, a buyer should meet a few requirements to show how reliable they are, like:

  • Excellent credit scores
  • Ability to repay loans
  • Proof of income
  • Reliable DTI (debt to income ratio)

However, a few of these requirements are often textual and could require lenders to examine some crucial documents.

Additionally, pre-approvals have expiry dates and usually do not exceed a period of 60 to 90 days, depending on the lender. So you might want to settle on a property before expiry, although you could get a renewal or, even better, seek a more permanent alternative.

Filling a full mortgage application

After you’ve gotten a pre-approval and settled on a property choice, the next step would be to fill in a mortgage application. This process shouldn’t be too different from the pre-approval procedure.

Naturally, a mortgage application will usually require that you have a few documents ready. These documents include:

Credit score report

A buyer usually requires an approximate credit score of 640 (and 580 for government-backed mortgage loans). What a lender does with your credit report is examine it extensively for defects that could make the loaning process harder.

Proof of income

Proof of income proves that you have a legal and stable source of income. Your lender will usually request certain documents to determine your source of income. A few important documents are:

  • Legal documents that indicate alternative forms of payment that have lasted for at least 6 months (for example, child support and alimony)
  • Documents that assure your lender that you will continue to receive payment for a minimum of three years

Furthermore, a lender might require a profit and loss statement if you are self-employed.

Proof of assets

Lenders will also require you to provide documents showing how many assets you possess. A few examples are:

  • Bank statements spanning 60 days
  • Documents proving you have recently changed the asset’s ownership.


After following these procedures, you can now settle down to commence procedures to procure a suitable home. Most lenders will usually request specific details regarding the house. A few of these requests might involve a house appraisal and a house inspection for defects depending on which your lender could offer you a closing disclosure.

To know more about what you need to secure a mortgage loan, talk to a real estate agent Campbelltown today.

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