Home Buying Guide

STAGE 1: PRE-QUALIFICATION

Pre-qualification is an informal interview with a mortgage professional about your assets, income, and expenses. The purpose of this step is to give you a general idea of the price range you can afford and provide insight on ways to achieve your homeownership goals.

STAGE 2: PRE-APPROVAL

The pre-approval process starts with a lender looking over your credit reports, employment history, and income to determine which loan programs you qualify for, the maximum amount you can borrow, and the interest rate you’ll be offered. Your loan officer will then submit your mortgage application and the documents you provide to verify your income, current and past employment, bank accounts, and credit report with an underwriter for approval. Your lender then issues a pre-approval letter, including any conditions needed for full approval.

STAGE 3: COMMITMENT

Loan commitment is issued after a lender approves both you and the property you plan to purchase. After careful examination of all relevant documentation, your loan representative will submit your complete application to the underwriter. Your application will either be approved or approved with conditions that must be met prior to closing.