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What is pre-approval in mortgage loan process?

April 26, 2017mortgage loan pre-approval process

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What is pre-approval in mortgage loan process?

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Pre-approval is a step above pre-qualifying. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is then submitted to an underwriter who makes the final decision regarding your loan application. If you’re issued a pre-approval by the underwriter, you are then issued a pre-approval certificate. Getting your loan pre-approval certificate allows you to close very quickly when you do find a home. A pre-approval can help you negotiate a better price with the seller, since the pre-approval is very close to having cash in the bank to pay for the home!