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Overview of the Mortgage Pre-Approval Process

As discussed in our article Pre-Qualified Vs. Pre-Approved, there are many benefits to preparation and going through a thorough Pre-Approval process prior to searching for homes and making an offer on a property. Below are the steps to getting pre-approved for a mortgage.

Step 1. Talk With Your Mortgage Originator

The first step to the mortgage pre-approval process is to have a conversation with your Mortgage Originator.  In order to help you reach your goals, a good Mortgage Originatorwill ask you questions & listen to what your goals, needs and concerns are. In order to help you achieve your goals, we first need to understand them.

Step 2. Your Mortgage Originator Will Send you a Customized Mortgage Pre-Approval Documentation Checklist

This will include a list of documents that you will need to gather as part of the pre-approval process.

Step 3. Complete a Loan Application

Foundation Mortgage offers a digital platform.  After speaking with one of our Mortgage Originators, you’ll be provided with a link to secured/encrypted online loan application where you can enter your information. Below are some helpful tips:

  • Double Check Your Personal Information: spelling of your Name, Date of Birth, Social Security Number, and current address.   This will be used to pull a credit report & errors or typos can affect what reflects on the report.
  • Enter Your Most Recent TWO Years Consecutive Housing and Employment History: Underwriting typically requires documentation of your most recent 2 years housing and employment history. Be sure to enter all address you have lived at and employers you’ve worked for over the past 2 year period.
  • Enter Income as Monthly Pretax Amounts: Don’t forget to enter any alimony or child support owed/received and other income streams such as rental income as a monthly amount.
  • Enter Liabilities as Monthly Amounts: All debts should be entered as a monthly amount. This includes Real Estate Owned amounts such as property taxes or insurance.  Enter these amounts as the monthly amount owed.
  • List All Real Estate Owed or That You Are a Co-Signer on: In the schedule or Real Estate Owned, enter all properties owned, whether owned free and clear or financed, & any properties you are a cosigner on.  List any mortgage, taxes, ins, HOA amounts as the monthly amount owed.

Step 4. Your Mortgage Originator Will Pull Credit & Review the Submitted Loan Application

Your Mortgage Originatorwill review your information and credit report and setup a follow up call to discuss any items needing further clarification

Step 5. Secured Data Transfer Link is Created to our Loan Processing System

  • Foundation Mortgage is committed to protecting your personal information.  The most secure way to transfer your personal information is directly into our Loan System NOT via Email.

  • Once your Mortgage Originatorhas received your online loan application, you will receive a link to establish an encrypted/secured connection to upload your income, asset, and other supporting documentation directly to our system.

  • Follow the pre-approval purchase documentation checklist provided by your Mortgage Originator.

Step 6. Pre-Approval Completed

After receiving all of your information, your Mortgage Originator will review, package and submit your loan file for Underwriting Pre-Approval.  Typically you will need to answer some questions & submit additional documentation after the review of your initial package is complete.

Step 7. Your Pre-Approval! Loan Type, Program, Quotes Reviewed 

Congratulations!  Now that you are Pre-Approved, your Mortgage Originator will review loan scenarios with you.

  • Maximum Loan Amount
  • Estimated Monthly Payment
  • Estimated Total Cash Needed To Close
  • Provide an overview of the process from this point forward

You’re Pre-Approved! Your Mortgage Originator will then provide an official Pre-Approval letter you can give to your Realtor and use to make offers on houses!

Have Additional Questions? Reach out to one of our licensed Mortgage Originators Today!