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Preapproval Steps

Get a Pre-Approved Home Loan

the exterior of a beautiful Southern California homesteadSan Diego Purchase Loans is here to help you get a pre-approved home loan, and to help make your home ownership dreams come true. Mortgage loan approval can be a very intimidating process for many borrowers, whether they are first time buyers or experienced investors. Our job is to present you with the best mortgage options, while taking the mystique and in this regard, the intimidation out of the loan pre- approval process. So if you are ready to get a pre-approved home loan, the dedicated team of lending professionals at San Diego Purchase Loans is here to help.

Mortgage Pre-Approval vs Pre-Qualification

We treat mortgage pre-approval as a multi-stage process with two distinct yet equally necessary parts. Our mortgage information page describes the various components of the home mortgage loan process, including mortgage pre-approval vs pre-qualification. We have helped many borrowers who did not understand mortgage pre-approval vs pre-qualification. Misunderstanding these two distinct stages can cause confusion and even holdups in the homebuying process. For clarification purposes:

  • Mortgage pre-qualification is the stage where a borrower meets with a lender to discuss his or her homeownership goals and needs. The borrower also presents the lender with financial portfolio information like debts, income and assets that can potentially offset lender risk. Based on a cursory look at this information, the lender will provide a general overview of mortgage loan options, including potential interest rates and the kinds of program(s) the borrower qualifies for.
  • Mortgage pre-approval occurs after the lender is able to verify the factual accuracy of the borrower’s financial portfolio information. Once mortgage pre-approval occurs, the lender will specify actual terms and conditions of the borrower’s home loan. The lender will present the borrower with a conditional commitment (in writing) that specifies the exact loan amount. This commitment allows the borrower to begin negotiating with sellers based on these terms.

It is extremely important to keep in mind that the terms and figures you receive from a lender as the result of pre-qualification are not official. Yes, if you provide a lender with accurate information, the pre- approval figures should reflect that accuracy. However, we always caution our clients to not write any checks (both metaphorically and physically speaking) they cannot cash until after the pre-approval process is officially completed and set terms are in-hand.

The mortgage pre-approval vs pre-qualification processes work well together because they help borrowers know in advance how much they can afford to spend on a home. Also, completing the pre-qualification process can help build a solid rapport between the borrower and the lending agent. Once you get a pre-approved home loan, you can fast track the buying process because it is no longer contingent on securing necessary financing.

The Mortgage Pre-Approval Process

For the moment however, let’s take a step back and discuss the four main steps of the mortgage pre-approval process. Our lending professionals will guide you through the mortgage pre-approval process in order to help propel your home-buying dreams to the point of purchase….

 

4 step graphic Image of our home mortgage loan pre approval process

Mortgage Loan Pre-Approval Information and FAQs

San Diego Purchase Loans is happy to provide you with the mortgage loan pre-approval information you need to help understand this process better. We are also happy to answer any other questions you might have relating to your specific situation and unique needs. The mortgage loan pre-approval information you find here represents some of the most common questions we get asked about this process on a daily basis. If you have any questions we do not address here, we welcome you to contact us directly….

The Home Loan Pre-Approval Process Timeframe

There are several factors that can influence the home loan pre-approval process timeframe. One of the most common factors is the ability to receive information on any documents or data that require additional verification. However, in most cases, once you have completed your application and uploaded all necessary documents, the home loan pre-approval process should take no longer than 24 to 48 hours.

What do you Need to Apply for Mortgage Pre-Approval?

In order to apply to mortgage pre-approval, you will need to submit the following documentation to your lending agent:

  • 2 years of your most recently filled Federal Corporate returns (all schedules)
  • Two years of your most recent K1’s associated with corporate returns
  • Year-to-date (YTD) P&L (this will be a loan submission requirement, so you do not need to prepare one now necessarily)
  • Two years of your most recent W2s statements (If applicable)
  • Your most recent pay stubs (the past 30 days’ worth should be fine)
  • Your most recent 2-months’ asset statements (checking, savings, 401k, stocks etc.), including all pages even if they are blank
  • For any other property that you currently own, please provide mortgage statements, homeowners insurance declaration page, and HOA information (if applicable)
  • Any Divorce Decrees and/or Child Support Agreements (if applicable)
  • A copy of your government issued identification (driver’s license, passport, etc.)

This is not an exhaustive list. Therefore, you might also need to present supplementary information like employment bonuses, average overtime salary, academic transcripts (for current students), as well as a detailed written explanation covering any recent gaps in employment. We recommend discussing your individual situation with us before you apply for mortgage pre-approval, and we will be happy to let you know what supplementary information will be required in order to successfully determine your pre-approval status.

Financial Privacy Disclosure

Please be aware that all mortgage banks and loan officers are bound by the exact same federal oversight related to consumer rights and lending laws regardless of the bank of their employment. To learn more about this, we welcome you to view our financial privacy disclosure before you submit any personal information required for the loan pre-approval process. Please click here to view or download our financial privacy disclosure.

Getting Your Mortgage Pre-Approval Letter

Your mortgage pre-approval letter is the conditional commitment in writing stating the amount of money you are approved to borrow in order to purchase a home. A mortgage pre-approval letter shows real estate agents and sellers you are serious about pursuing a property that is currently on the market for sale. Because of this, your mortgage pre-approval letter can make a significant (and positive) difference in the negotiating process.

As soon as you are ready to submit an offer on the home you would like to purchase, let us know and we will promptly provide you and your agent with an address-specific pre-approval letter. If you need a pre-approval letter after 5pm on weekdays, or anytime on the weekend, we are happy to promptly fulfill this request for you as well. All you have to do is text, call or email us with the subject property address, and we will quickly get the letter to you or your agent.

Loan Preapproval and Fixed Mortgage Interest Rates

In general, the mortgage loan preapproval interest rate is considered to be accurate for around 90 days, although this is more of a general guideline than a set rule. We can advise you of the status of your approval and provide firm information to you based on the status. However, your fixed mortgage interest rates can be locked in as soon as you have an accepted offer.

Looking Into all Your Different Home Loan Options

During the pre-approval process, you can still choose to look at different home loan options in order to solidify (or alter) your loan program decision. In the past, some lenders have frowned upon a borrower officially looking into different home loan options, but as a consumer you have every right to be comfortable with the loan program you choose. Financing a home is very long-term, legally binding contractual agreement, so be sure to go with the loan program you feel the most confident about.

San Diego Mortgage Lenders You Can Count On

If you are ready to get a pre-approved home loan for the home of your dreams, we are the San Diego mortgage lenders you can count on to get you the best possible rates and terms.

Although we help clients nationwide secure funding, we are still proud to be a locally vested company that immensely enjoys face-to-face meetings with our fellow San Diegans.

Our team of highly experienced San Diego mortgage lenders are here to help you take the intimidation out of the pre-approval process. We welcome you to contact us to schedule an appointment in-person or over the phone, or with any questions you might have!

 

CONTACT SAN DIEGO PURCHASE LOANS TODAY!

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