GETTING A MORTGAGE PRE-APPROVAL
IN LOS ANGELES AND SURROUNDING AREAS
What’s the difference between a mortgage
pre-qualification and a pre-approval?
A pre-qualification is a letter of approval stating you meet basic financial criteria, based most often on the borrower’s word. A pre-approval statement from a lender means the broker has investigated your assets, debt, and credit history to determine whether you can qualify for the loan.
Why is a mortgage pre-approval important in Los Angeles?
Los Angeles and Orange county are highly competitive real estate markets. If you plan to finance a home purchase, a mortgage pre-approval from a lender is critical, especially when multiple buyers are competing for the same property.
- A lender pre-approval letter should be included in your offer to the seller.
- A pre-approval is more attractive to a seller than a pre-qualification because it means the lender has done more due diligence to
determine whether you are financially qualified for the loan.
Cohen Financial Group can help with your pre-approval.
You just visited a property and decided you want to make an offer right away, but it is Saturday afternoon, and most lenders are out of the office. The team at Cohen Financial Group understands that real estate doesn’t take weekends off. We are available to execute a pre-approval when you need us. Our goal is to ensure you win.
What forms do I need to complete for a pre-approval?
- Our loan application.
- An authorization agreement granting us permission to obtain your credit history from a credit reporting bureau.
What documents should I be ready to provide for a
pre-approval?
- 1. Identification
- Government issued ID for each borrower – this can be a state-issued driver’s license, birth certificate, or passport.
- 2. Proof of Income
- Employees – most recent pay stubs
- Self-employed – profit and loss statement
- Passive income – most recent financial asset statements
- 3. Financial Asset Statements – At least two months of your most recent statements, including:
- Bank checking and savings
- Brokerage
- Retirement fund – 401K, pension, self-funded ( ROTH, SEP, Individual), annuities
- Trust
- 4. Tax Returns
- Employees – W-2 forms and tax returns for the last two years.
- Self Employed – Profit and loss statements, 1099, and tax returns for the last two years.
- Passive Income – Tax returns for the last two years.