Process of Approval of the Mortgage loan

Your First meeting With the Mortgage Creditor

Process of approval of the mortgage loan in general begins with initial interview, where the possible buyer of real estate and the mortgage creditor meet to discuss the potential loan. You should bring the information to check up your income and long-term debts.

Often people prefer to meet the mortgage creditor before habitation search to define in advance, what range of the prices they can is realistic to give and mortgage quantity for which they can prepare. This step name preliminary qualification and can save to you a lot of time and be disturbed, making sure that you look in a correct range of the prices.

For your first meeting with the mortgage creditor you should bring:

1. The contract of purchase and sale for the house (if you have one),

2. Your numbers of the bank account and the address of your branch of bank, along with statements of the current and savings account within the last 2-3 months

3. Payment stubs, W-2 refusing forms, tax declarations within last two years, or other proof of employment and profitable check [get divorced from settlement papers, if applicable]

4. Accounts of a credit card during last few settlement terms, or the cashed checks for a rent or payments of the account for utilities to show payment history and quantity of a revolved debt; and the information on other debt, such as autocredits, furniture loans, and credits for formation

5. Balance sheets and tax declarations if you are working not on hiring

6. Any letters on a gift, if you use a gift from the parent or the relative or other organization to help to pay advance payment and-or additional expenses. This letter simply declares that money - actually a gift and shouldn't be compensated.


Presence of these points near at hand when you visit mortgage office of the creditor, will help to accelerate applied process. Usually registration payment and an estimated payment should be paid, when you represent the statement on mortgage loan granting. It only is made after you have successfully carried on negotiations concerning the house and have accepted the offer the seller. In general, there is no payment for preliminary qualification.

After the first meeting with the creditor you should have a general idea if you have the right for the size and loan type, you want. The creditor should inform, whether you have the right to the loan. If to you refuse an internal loan, the creditor should explain the reasons. If it occurs, the creditor will usually discuss any variants with you. Applied process takes between 1-6 weeks.

What occurs after I asked the mortgage loan?

It usually a beret of the creditor between 1-6 weeks to finish an estimation of your statement. For the mortgage creditor rather usually to ask behind the additional information as soon as the statement has been submitted. The more likely you can give the information, the faster your statement will be processed. As soon as all information has been checked up, the creditor names you to inform result of your statement. If the loan is approved, the closing date is adjusted, and the creditor will consider final process with you. And after closing, you be able move to your new house.

How preliminary prepare also different preliminary approval?

Preliminary qualification - an informal way to see, how many you can be able borrow. You can "be preliminary qualified" by phone without documents, telling to the creditor your income, your long-term debts and as you can give the big advance payment. Without any obligation it helps you to reach approximate value of quantity, which you can have in stock to spend for the house. If the probability of approval is high, you receive the letter before qualification to show to real estate agents.

Preliminary approval - the actual obligation of the creditor to give to you. It involves assemblage of your financial reports and passage of preliminary process of approval. Preliminary approval gives you certain idea of that you can give and show to sellers that seriously concern purchase. Process grasps you in the loan.