Pre-Qualification Process:

A pre-qualification is a large picture initial assessment of the potential buyer. You will schedule a time to chat with a lender over the phone or email. It is a quick estimate of what you might be able to borrow. In a nutshell, it provides an estimate of your borrowing power. Is based on information you provide verbally about your income, employment, assets, credit and bank accounts.

Pre-Approval Process:

A pre-approval is a more in-depth assessment of your eligibility to secure a loan. You will complete a loan application and your credit will be pulled. You will then receive a pre-approval package that allows you to start shopping for homes. The pre-approval package will also list out the important income and assets documents needed. It is always best to provide those in advance. This makes the loan process go smoother and takes the added pressure of feeling rushed to supply documentation in a single day. Your realtor will require this pre-approval letter before they take you to tour homes. A seller will also require a copy of this letter when your realtor submits an offer.

Conditional Loan Approval Process:

Not all lenders are able to provide this; however, some lenders will submit your complete loan package (with income and assts) to underwriting in advance for a full review for a formal conditional loan approval without having an accepted offer on a home. This includes complete verification of income and assets, with a total analysis of debt. This signals to the seller that you are already approved and puts you in a very similar position as a cash buyer.

What Items Will Be Needed:

Each borrower is different, but the general rule for items to have handy when you are ready to apply. Always wait and allow the lender to give you the specific items needed list. Most lenders have an secure portal for you to apply and upload documents. You only want to upload exactly what they ask for. Sometimes too much information can cause a hurdle. Let your lending expert guide you.

  • ~ Government ID
  • ~ Copy of Medical License
  • ~ Employment Contract
  • ~ Paystubs (the most recent 30-days)
  • ~ W2’s: for the most recent 2 years
  • ~ Bank Statements (the most recent 2-months)
  • * Tax returns when you are self-employed or have rental property