Does your mortgage hold water that is pre-approval?

Ensure your approval holds water – or find yourself drowning with debt. (Photo: ThinkStock)

If a loan provider lets you know that you could be pre-approved in just a couple of minutes, you should stop and run when you look at the other direction — fast. a pre-approval that is real far more than simply that loan application and credit file.

1. You’ve presented a credit card applicatoin with a lender.

You’ve authorized the lending company to pull your credit history.

You’ve supplied all required supporting documents.

Lender has especially evaluated all documentation that is supporting together with your tax statements and each little bit of monetary paperwork.

Lender has determined you meet all credit recommendations on the basis of the financial energy of one’s credit, financial obligation, earnings and assets.

Lender has communicated for you exactly exactly what monies you will need for closing and total mortgage repayment, along with all suitable programs that you qualify.

Lender has run automated underwriting in your scenario.

Almost all the loans that are residential pass automated underwriting through Desktop Underwriter (DU for short or Loan Prospector, LP). Each loan is carefully run through an automatic underwriting system whether you’re interested in a regular home loan, FHA home loan if not a mortgage that is jumbo. If the loan will not pass automatic underwriting, it’s most likely your loan won’t move ahead. Continue reading