Getting pre-approved for a mortgage in Puerto Rico

Why it comes first

A pre-approval is a lender's written statement of how much it will lend you, based on documents it has actually reviewed. It is not the same as a pre-qualification, which is an estimate based on what you told them over the phone.

On bank-owned and HUD properties this is not optional. Banks discard offers without proof of funds or a pre-approval letter, and HUD bids are submitted through agents who will ask for it before they file anything on your behalf.

What the lender looks at

• Credit score and history. Below 580 most doors close; above 620 the options widen considerably.
• Debt-to-income ratio: what you owe monthly against what you earn. Roughly 43% is the usual ceiling.
• Employment stability, generally two years of verifiable history.
• Savings for the down payment and closing costs.

Documents to have ready

• Two years of tax returns.
• Recent pay stubs, usually the last two months.
• Bank statements for the last two or three months.
• Photo ID and Social Security number.
• If self-employed: profit-and-loss statements and business returns.

Things worth doing before you apply

Do not open new credit lines or finance a car in the months before applying — it changes your ratios at exactly the wrong moment.

Large unexplained deposits into your account will be questioned. If a family member is helping with the down payment, document it as a gift from the start.

Shop more than one lender. Rates and fees differ meaningfully between banks and cooperativas, and cooperativas will sometimes finance property they own themselves on better terms.