Step-by-step process for obtaining home loan pre approval
Part 1 of 4 discussing the loan process in the “Mortgage Basics” series.
The Loan Process Part 1: Pre Approval
The Loan Process Part 2: Underwriting
The Loan Process Part 3: Appraisal
The Loan Process Part 4: Loan Funding
When you first decide you would like get a purchase or refinance loan, you’ll need to fill out an initial loan application in order to prequalify for a loan. This can be done online, or you stop by one of our offices and speak with a loan officer. Call us at 805.543.LOAN with any questions.
The loan application is a four page document which includes your residence history, employment and income history and assets and liabilities.
We usually ask for a two year minimum on the residence, employment and income histories. Along with the loan application, we ask that you supply all supporting documentation. This includes two years of federal tax returns,W2s and/or 1099s, pay stubs from the past 30 days of employment and bank statements from the past 60 days.
Once all the paperwork has been gathered and accurately filled out, we will run a credit check, as well as verify that we have all accurate and necessary information to move forward. Then, you’ll be asked to sign the initial disclosures, and the loan is processed through Fannie Mae, Freddie Mac or another government automated underwriting engine (depending on the loan) for official pre approval. Once this occurs, you can lock in your rate and get the terms fixed, or you can float the rate if you think there’s a chance of market improvement, or you’re still uncertain when you want to close.
Pre approval can be done in as little as an hour if you have thoroughly completed the loan application and have all the needed paperwork to support the information on the application. Things will take longer if you don’t supply the correct or thorough enough information, or if needed documents are missing. It’s best to stay in communication with your loan officer if you have any questions, so this process can go smoothly.