What is a pre-approval?
Allows the ability to get approved for a specific loan amount prior to finding the home you want to purchase. The loan is underwritten and the lender commits to a specific loan amount. This can give a great advantage with a homeowner or realtor is someone else is interested in the same home at the same time.
SECU renders a decision based upon information provided on the loan application. Because this decision is based upon information that has not yet been verified, it is considered a pre-approval subject to verification and/or receipt of additional information. Once all of the condition outlines in the pre-approval letter are satisfied, the loan will receive a final approval.
http://images.mortgagequestions.com/img/brand95/utilities/dotclear.gifGenerally speaking, it’s a preliminary decision based on the information provided during the application interview. It should take into account your current income, debt and credit history. There are different levels of “pre-approval,” depending on how far the lender takes the process. The best type of pre-approval includes a tri-merged credit report from the top credit agencies and a review by an underwriter or an approved automated underwriting program. A pre-approval is not a full-fledged loan commitment, however. Once you find a property and sign a sales agreement your lender can continue processing your loan. (Click here to get pre-approved NOW!
