Dan Hubrich of Mountain View Mortgage is back and this month he’s explaining loan pre-approvals and how they are different than the final approval received before closing.

This month I’d like to explain the pre-approval process VS the full underwriting process. When we talk to a new client who wants to get a mortgage, we try to round up everything that underwriting is going to want to see later. Paystubs, W2’s, bank statements, tax returns if needed, etc. Once we have a full application and the borrowers income/asset documents we are able to make a decision on how much you will qualify for. We use the same guidelines that the underwriter is going to use so generally there are no surprises later. However, with that being said, the underwriters may still come back and ask for additional information once they personally review the file. This is called a “conditional approval”. It’s common and nothing to worry about. Once those additional items are uploaded, the underwriter will issue the clear to close and then we can proceed with setting up closing. The MOST IMPORTANT thing to remember is that your loan officer is your friend and is your liaison to getting your loan done. It’s better to send more documents than you think we need and then we will only send underwriting what they actually request. This will avoid any delays later in rounding up stuff at the last minute and will help us have a complete picture of your financial situation so we can issue the most solid pre-approval possible. Let me know if you have any questions about qualifying for a mortgage and we’ll take great care of you!