How to Get Pre-Approved for a Mortgage in Durango: A Step-by-Step Checklist

A pre-approval tells you, and the sellers you make offers to, how much you can borrow before you start touring homes. In Durango’s market, where good listings can move quickly, having one in hand before you shop can make the difference. Here is what the process looks like and what to gather.

Pre-qualification vs. pre-approval

A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval goes further: your income, assets and credit are actually reviewed, so the number is much more reliable. Most listing agents in La Plata County will want to see a pre-approval letter with your offer.

Documents to gather

• Pay stubs covering the last 30 days
• W-2s for the last two years (or 1099s if you’re a contractor)
• Two years of personal and business tax returns if you’re self-employed
• Two months of bank and investment statements
• A photo ID
• For VA loans, your Certificate of Eligibility (we can usually request it for you)

Your exact list depends on your situation. Tap what applies to you in the checklist below, then check items off as you gather them.

The steps

1. Have a short conversation. We talk through your goals, budget, timeline and which loan types may fit: conventional, FHA, VA, USDA or jumbo.
2. Apply. You complete an application online or with us by phone, and authorize a credit check.
3. Document review. We review your income, assets and credit and flag anything that could cause problems later.
4. Pre-approval letter. You receive a letter showing the loan amount you’re approved for, which your agent can include with offers.

Tips that help

• Avoid opening new credit cards or financing large purchases until after closing.
• Don’t move large sums between accounts without keeping a paper trail.
• If you’re self-employed or have seasonal income, which is common in Durango, talk to us early so we can structure the file correctly.

How long a pre-approval lasts

A pre-approval is based on your credit, income and assets at a point in time. Credit reports and documents go stale after a few months, so if your search takes longer I will ask for updated pay stubs and bank statements and refresh the approval. That keeps your letter accurate when you are ready to write an offer.

Making your pre-approval count in the Durango market

• Call me before you write an offer. I can update your letter to fit the specific property and price, so it does not show more or less than the seller needs to see.
• Let me talk to the listing agent. A quick call from a local lender the agent knows can make your offer stand out.
• Know your property type. Condos, homes with wells and septic, and rural properties each have their own steps. See my guides to condo loans and rural mountain homes.

What can derail a pre-approval

• Opening new credit cards or financing a car or furniture before closing
• Changing jobs, or switching from salary to commission or self-employment
• Large deposits that are not from your paycheck and are hard to document
• Co-signing a loan for someone else
• Missing a payment on any account

If anything like this comes up, tell me before you act. There is usually a way to handle it if we plan for it.

Next steps

Not sure what price range to look in? Try the home price range tool, read about home purchase loans, or see how I compare with other mortgage lenders in Durango CO. Veterans can also read my VA home loan guide, and buyers in rural areas my USDA loan guide.

Ready to start? Call Peter at (970) 828-1610 or read more about working with a local Durango mortgage lender.

Animas Mountain Mortgage Inc. NMLS #1742747 | Peter Pritchard NMLS #404172 | CO License #100009365 | Equal Housing Opportunity. This is not a commitment to lend. All loans subject to credit approval.