How to get prequalified for a mortgage
A prequalification letter is the first real step toward buying. Here is what lenders need, how long it takes, and what the letter actually means in a California offer.
What prequalification means
A prequalification is a lender's estimate of how much you can borrow, based on a quick review of income, credit, and assets. It is not a guarantee, but it signals to sellers that a buyer is serious.
Documents lenders typically ask for
The standard request is two years of W-2s or tax returns, recent pay stubs, two months of bank statements, and authorization to pull credit. Self-employed buyers usually need additional documentation.
Prequalification vs. preapproval
Prequalification is faster and lighter; preapproval involves a full underwriter review of documents. Most California sellers want to see at least a prequalification with an offer, and a preapproval strengthens any offer noticeably.
How long it takes
A prequalification letter is usually issued within 24 to 48 hours with most lenders. Preapproval takes 5 to 10 business days because the underwriter actually reads the documents.
Who to work with
MUVE works with trusted local lenders who understand the Southern California market and the specific challenges of the area. We make the introduction at no cost.
Need a lender? MUVE can connect you with someone we have worked with for years. The intro is free and there is no obligation.
Get a lender introduction →More from MUVE's buyer guides.
First-time homebuyer guide for Southern California
What to expect on your first home purchase, from getting prequalified to closing, with the specifics of buying in Orange County and the Inland Empire.
Read →The home-buying timeline, step by step
A realistic look at how long each step of buying a home in Southern California takes, from first consultation through closing day.
Read →Escrow and closing costs in California
Plain-language look at what escrow does, who pays what, and the typical 2 to 3 percent of purchase price that closing costs run in California.
Read →Writing a competitive offer in Southern California
How offer price, contingencies, and terms work together to make an offer that wins, especially in multiple-offer situations.
Read →