Texas Lone Star Lending Video
5 Areas That Affect Your Pre-Approval
Pre-approval is all about understanding your financial picture. These are the key areas lenders review to identify any obstacles and determine what you may qualify for.
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Read the transcript
Intro:
Pre-approval is all about understanding your financial picture. These are the key areas lenders review to identify any obstacles and determine what you may qualify for.
1. Debt-to-income ratio
Lenders look at how much of your income is already going toward debt. This helps determine what monthly payment is realistic for you.
2. Employment and income stability
Consistent income is important during the loan process. Lenders want to see a stable work history they can rely on.
3. Credit score
Your credit score impacts both your approval and your loan terms. It helps determine what options are available to you.
4. Available funds
Lenders review your savings for your down payment and closing costs. It also helps if you have some funds set aside after closing for unexpected expenses.
5. Documentation
Everything needs to be verified — income, assets, and employment. Having complete documentation helps the process move forward smoothly.
Outro:
Understanding these areas upfront can help you move through the process with more clarity and confidence.