Today we're going to break down the lending approval process. Becoming approved for a loan is a pivotal step when it comes to purchasing a home and many clients need better information on this process.
Step 1 Pre-Qualification
Getting "pre-qualed" as it's often referred to, is an optional step that feels a lot less optional lately. This step allows potential buyers to see how much house they can truly afford and expedites the buying process. In a competitive market, this step has become crucial.
Step 2 Pre-Approval for the Lending Process
Pre-Approval is very important as the pre-qualification is essentially a "probably". Pre-approvals are usually good for 60-90 days and speed up the underwriting process. When inventory is this low, clients need all the help they can get with speeding up the lending process. The pre-approval, however, gathers information and submits alongside the offer to ensure buyers can come through. Buyers will need to give loan officers some information here that will help prove that they can afford the loan. Thus, this is the first big step of the lending process.
Step 3 Underwriting Approval Finishes the Process
This is where the magic happens! Now, loan officers who work hard on the lending approval process, tie all the loose ends together and get their client lending approval! So, next step: pick up the keys because you're going to need them for your new home!
Have a comment, tip, or concern?
Thanks for reading Elite Informer! Here's more where that came from.