Are You Pre-Approved?
The process of getting your loan approved starts with the pre-qualification process, which turns into a pre-approval stage and ends with an underwritten loan approval. The pre-qualification process only applies to the purchase of a new home. A pre-approval is obtained later in the purchase cycle or at the start of a refinancing transaction.
In pre-qualifying for a loan you will need to provide information about your income, debts and assets. We will look at your credit profile and find out from you how much of a down payment you intend to make after which we will determine which loan programs would work best for you. In line with our findings, we will then give you a pre-qualification letter, which you can give to any real estate agent with whom you are working. Keep in mind that this is just an estimate of what you can borrow and not a commitment to lend.
Pre-approval gives you a competitive advantage when the time comes to bid on a home as it will entail a specific loan amount. Getting pre-approved for either a purchase or refinance requires that a mortgage application is completed and that you provide documentation to verify employment, assets and financial status. Such documentation might include your most recent 30 days of pay stubs, W-2 forms for the last two years, most recent 2 months bank statements (all pages), income tax returns, among other things.
Now that we have a thorough financial profile, we can seriously match you with the different loan programs available and then submit your application to the lender with the most competitive rate that best meets your needs.
Although you are pre-approved for a loan, certain other conditions must still be met for you to receive a final approval and funding. One such condition is an appraisal of the property. If the appraised value of the property is less than expected, for example, this could change the final loan amount. Or, if you lost your job during the loan process the lender will likely deny the loan request. Additionally, if interest rates rise or a specified expiration date passes, the lender will review the situation and recalculate your mortgage amount accordingly.
The loan process is not very complex but there are rules that must be followed. We work with you to make sure that you meet the requirements set forth by lenders so that they give you the final approval on your financing.