How to Get Pre-Approved for a Mortgage

getting pre-approved for a mortgage
getting pre-approved for a mortgage

Stories abound about people who couldn't qualify for a mortgage. The problem, say experts, is that people aren't providing the bank with all the documents that they need to prove that they will be able to manage a mortgage.

"You hear it all the time, 'Oh, nobody can get a loan,'" said Todd Huettner, principal of Huettner Capital and a mortgage broker in Denver, Colo., "but it's not true." The increased amount of paperwork means that there's a greater chance you might overlook something that causes your loan to be denied, says Huettner, but if your financials are strong and you fill out the paperwork correctly, you can get a loan.

Huettner said that he had one client who, because his credit cards had recently been stolen, had opened new accounts. It happens everyday, but that's something that sends up red flags when you're attempting to obtain a mortgage. "Opening new credit card accounts right before you apply for a mortgage makes a bank nervous," said Huttner. "The client didn't realize this would be an issue -- he paid off his credit cards, and thought that he was in good shape. Knowing the circumstances, I was able to address it proactively, before the underwriter could deny the loan."

What potential homebuyers need to keep in mind, said Huettner, is that getting a loan is not impossible. The key is to know how to approach getting pre-approved for a mortgage. Here are some tips for how to get pre-approved for a mortgage.