The 3 Major Steps To Mortgage Approval
Step 1. Discovery Call
Here is where we discuss your financial situation, the loan amount you can likely qualify for, and advise you of any hurdles or roadblocks you may encounter in advance of borrowing so that you will be successful when the time comes. This step helps you clarify your situation and sets you up with an action plan and the confidence to move forward.
Step 2. Pre-Approval
To get pre-approved for a mortgage, you'll need five things—proof of assets and income, good credit, employment verification, and other types of documentation your lender may require. This stage should confirm the information revealed in the Discovery Call. Please also note that at this stage the lender will put you into a rate hold, but will rarely review the documents.
Step 3. Final Approval Process
The lender will verify your updated debt ratios and credit score to determine whether you meet the qualification requirements.
Sign lender documents – Upon approval, you will be required to sign mortgage documents outlining the mortgage loan details provided to you by the lender. (If you are dealing directly with a lender, you will complete the application with them.)
Sign legal documents – Instructions will be sent to a lawyer of your choice to prepare the final legal mortgage documents that transfer property ownership to your name.