A pre-approval lets borrowers know what they are financially capable of affording and can help prevent any issues moving forward.
With the aid of a mortgage professional, the borrower completes the application and provides all required documentation.
Your processor will order a Credit Report, Appraisal, and Title Report. The information on the application, such as bank deposits and payment histories, are then verified.
If you applied and qualify for a mortgage, you’ll receive conditional approval. At this stage, your lender may require additional documentation and proof of hazard insurance.
Your completed file will be submitted to underwriting for final approval.
Once the final approval is issued by the underwriter, any final conditions are gathered and satisfied.
You’re almost there! When the loan is clear to close, all closing documents are sent to the title company and a closing is scheduled.
Once you’ve reviewed your final statement, your file will go to closing and will be ready to fund!
Data is available through the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/data-research/hmda/