A Definitive Guide to Getting Preapproved for a Home Loan

It’s no secret that owning a house is a responsibility because you must ensure that it’s serving you well as a homeowner. Conversely, a house is also considered an investment because it’s one of the most expensive things the average person can buy. However, buying a house isn’t easy, and most people don’t have the money to pay for one out of pocket. The good news is that a home loan can help.

A home loan is a loan provided by a bank or financial institution to finance a house. It allows you to pay off the total price of your home over a certain period and is usually interest-free. While highly beneficial on its own, you can make it work wonders for you by getting pre-approved. Not many people are aware of how this works, so we’ll discuss the details in this article.

Why Getting Preapproved Matters

When you decide to buy a house, you aren’t going to be paid the full price of your home, but instead a loan amount. Therefore, you’re going to need all the money you can get before you find your dream home. The best way to get the cash you need is through a preapproval.

Your bank will look at your credit, your finances, and your debt to determine if you are qualified for the loan. If you prove to be a responsible borrower, the bank will give you a preapproved loan application. This lets you know how much money you’ll be able to borrow from the bank.

There are two significant benefits of this. You’ll know how much money you have to spend on a house. You won’t have to waste time looking at houses you can afford and will be able to focus on finding the right home for you. For another, it proves that you’re serious about buying a house. A lender will know you are a serious home buyer if your preapproval goes through, so this makes you a much more attractive candidate in their eyes.

Qualifying for a Preapproval

To qualify for a preapproval, you’ll need the following:

Proof of Income

Before buying a house, you need to prove that you can afford it. Your lender will want to see proof of your income. You can get this from pay stubs, reports from your employer, tax returns, or even bank statements.

Proof of Assets

Your lender also needs to know that you can keep up with your loan payments. Thus, they will want to see proof of your assets. This can come from bank statements, stocks, bonds, mutual funds, etc.

List of Debts

You also need to list any current and coming debts. If you have one, you will need to show a detailed list of your debts, including car loans, credit cards, student loans, and mortgages. This is required because having debts means you’re a liability to them, and they want to know if you can pay them back.

Credit History

A big part of proving you can repay a loan is good credit history. This shows that you have a steady flow of income and that you can handle money responsibly. You will need to present proof of your credit history, which is usually provided by a copy of your credit report.

A Down Payment

To prove you can afford a house, you need to show that you have the money to make a down payment. The down payment is the amount of money you’ll need to put towards the house price. The typical down payment is 20% of the loan amount, but it can differ depending on your loan type.

What Comes Next?

After gathering all the documents, you’ll need to present them to your bank or whatever financial institution you’re applying from. You’ll need to wait for at least three to five days, though it could also take as long as two weeks. You’ll be able to tell right away if you have been approved, though you should keep checking your bank account if there are any follow-up questions.


If you can’t pay for a house on your own, a home loan is the best way. With the money you get, you’ll be able to pay off the house and start living on your own. The preapproval process isn’t complicated, but it’s necessary if you want to make things easier for you.

If you’re looking for home loans in Sacramento, CA, Hawkins Home Loans can help you! We understand our clients’ financial circumstances, so we provide comprehensive mortgage solutions to get them closer to their dream home coupled with fair rates and terms. Simply go to our website to schedule an appointment!