The
first step in the loan process is getting
prequalified to find out and to go over the basics of your situation
-- basics about your income, assets, and credit, as well as the basics
involving price range and loan programs
available to you. We use the term "prequalification" --
which means that based on the information that you have provided,
you qualify to purchase a house of x $$ under certain financing terms
of a particular program. When you make an offer on a house, you can
give you agent a prequalification letter to present to the seller
to let them know that you are a legitimate buyer and that you are
qualified to purchase the home.
The second step
in the loan process is completing the loan application itself. The
loan application involves review of the documentation to support your
income, assets, employment and credit. Once the loan application is
complete, your loan will be submitted to underwriting for approval.
With your loan approved, you can look for houses with confidence --
and when you make an offer on a house, you can give your agent with
an approval letter to present to the seller to let them know that
your financing is taken care of short of the appraisal of the property
and any other outstanding conditions.
