Page 6 - New Agent Real Estate training book

Bank Approvals

Pre-qualication - It's meant to help you decide if you'd like to move forward with your home loan
application. You and your lender will talk about your finances to help them give you loan options, and
estimate your down payment and monthly payments.

Pre-approval - Your actual documentation is sent to processing, which allows your lender to provide you
with a max loan amount. With this, you can confidently start shopping for your home!

Underwriting credit approval - The documentation that you sent for your pre-approval is validated and
sent to Underwriting. With this approval, you’re able to get started on a contract for your new home!
Your lender will take it from there.

Mortgage process

1. Hire a real estate agent
2. Get pre-qualified for a ballpark loan amount from your lender
3. Find your home
4. Sign a sales contract for the property
5. Complete a loan application
6. Provide financial documentation
7. Pre-approval
8. Get appraisal, which normally takes up to two weeks from the time it’s ordered until the report
is received. An appraisal is an estimate of the value of a property made by a qualified
professional, its primary goal is to justify the lender’s investment, but it also protects you from
overpaying. Your offer contract will be contingent on whether the appraisal comes in at or
above the purchase price you and the seller have agreed upon.
9. Underwriting will review all your financial documentation
10. Your loan gets approved
11. Review and sign a closing disclosure, which is required to be signed by midnight of the same day
it’s issued.
12. Sign loan docs and loan closes