As discussed in our article Pre-Qualified Vs. Pre-Approved, there are many benefits to preparation and going through a thorough Pre-Approval process prior to searching for homes and making an offer on a property. Below are the steps to getting pre-approved for a mortgage.

‍Step 1. Talk With Your Mortgage Originator

‍The first step to the mortgage pre-approval process is to have a conversation with your Mortgage Originator.  In order to help you reach your goals, a good Mortgage Originator will ask you questions & listen to what your goals, needs and concerns are. In order to help you achieve your goals, we first need to understand them.
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Step 2. Your Mortgage Originator Will Send you a Customized Mortgage Pre-Approval Documentation Checklist

‍This will include a list of documents that you will need to gather as part of the pre-approval process.
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‍Step 3. Complete a Loan Application

‍Foundation Mortgage offers a digital platform.  After speaking with one of our Mortgage Originators, you’ll be provided with a link to secured/encrypted online loan application where you can enter your information. Below are some helpful tips:

• Double Check Your Personal Information: spelling of your Name, Date of Birth, Social Security Number, and current address.   This will be used to pull a credit report & errors or typos can affect what reflects on the report.

‍Enter Your Most Recent TWO Years Consecutive Housing and Employment History: Underwriting typically requires documentation of your most recent 2 years housing and employment history. Be sure to enter all address you have lived at and employers you’ve worked for over the past 2 year period.

• Enter Income as Monthly Pretax Amounts: Don't forget to enter any alimony or child support owed/received and other income streams such as rental income as a monthly amount.
  
  
• Enter Liabilities as Monthly Amounts: All debts should be entered as a monthly amount. This includes Real Estate Owned amounts such as property taxes or insurance.  Enter these amounts as the monthly amount owed.
  
  
• List All Real Estate Owed or That You Are a Co-Signer on: In the schedule or Real Estate Owned, enter all properties owned, whether owned free and clear or financed, & any properties you are a cosigner on.  List any mortgage, taxes, ins, HOA amounts as the monthly amount owed.

‍Step 4. Your Mortgage Originator Will Pull Credit & Review the Submitted Loan Application

‍Your Mortgage Originatorwill review your information and credit report and setup a follow up call to discuss any items needing further clarification

‍Step 5. Secured Data Transfer Link is Created to our Loan Processing System‍

• Select Home Lending is committed to protecting your personal information.  The most secure way to transfer your personal information is directly into our Loan System NOT via Email.  
• Once your Mortgage Originator has received your online loan application, you will receive a link to establish an encrypted/secured connection to upload your income, asset, and other supporting documentation directly to our system.  
• Follow the pre-approval purchase documentation checklist provided by your Mortgage Originator.
  

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‍Step 6. Pre-Approval Completed
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After receiving all of your information, your Mortgage Originator will review, package and submit your loan file for Underwriting Pre-Approval.  Typically you will need to answer some questions & submit additional documentation after the review of your initial package is complete.


Step 7. Your Pre-Approval! Loan Type, Program, Quotes Reviewed
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Congratulations!  Now that you are Pre-Approved, your Mortgage Originator will review loan scenarios with you.

• Maximum Loan Amount
• Estimated Monthly Payment
• Estimated Total Cash Needed To Close
• Provide an overview of the process from this point forward

You’re Pre-Approved! Your Mortgage Originator will then provide an official Pre-Approval letter you can give to your Realtor and use to make offers on houses!

‍Have Additional Questions? Reach out to one of our licensed Mortgage Originators Today!