the loan pre-approval process faq page

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Typically one week or less after all required documents and "conditions" are given to the lender. 

Get a free and accurate valuation of your home with our home valuation tool. Our tool takes into account the There are many different loan programs including:  Conventional, VA 100% Financing, FHA (3.5% down payment), FHA 203K Rehab, CALHFA with down payment assistance,  and USDA 100% financing (location dependent).  Each have different requirements and interest rates.  There are even ways of decreasing the interest rates(buy down) or  receiving a lender credit for a portion of your closing costs.  latest market trends and data to provide you with an estimate of your home's value.

You want to get a documented PRE-APPROVAL with fully documented DU approval.  Not a pre-qualification.  Documented PRE-APPROVAL  is in your best interest.  You want to reduce your risk of not being able to close escrow and  losing your initial deposit and pre-paid fees  (for the appraisal and home inspection). 

For YOUR best results it is important to use a lender that has years of experience,  a director lender, and a lender that you can visit in person.  Face to face interaction is always best.  Direct Lenders have their own "Check Book" to fund the loan, The loan officer you deal with is an employee of that direct lender. 

Don't compare lenders just based upon interest rate.  Compare based upon experience and reputation.  When comparing lenders financially, compare the Annual Percentage RATE(APR), not loan interest rates.  APR includes the interest rate and your cost/fees for getting the loan.  One lender may quote a lower rate but could charge you higher loan fees to get that lower rate.. 

When discussing  with the lender don't just focus on the pre-approved purchase price, ask the lender what your monthly (PITI) payment will be.  You need to make sure that you are comfortable with the monthly payment and that it is within your monthly living expense budget goals.  Also ask your lender what the estimated CASH TO CLOSE is required.  This is the money that you will need to close escrow out of your own account.   Also remember that buying a home may reduce your income tax and increase your take home pay, please discuss with your tax professional. 

Documents you will need to provide the lender are:  last two years of tax returns, last two months of back statements, last 30 days of paycheck stubs, 401K or retirement statements, DD214 eligibility(for VA loan), and Verification of Employment.  For self employed income other documents will be required.  For rental income property copies of lease agreements and possibly rental income on your tax returns. 

It may be required that you file any past due tax returns, even if you filed a formal IRS extension request.  Get this done prior to pre-approval. 

If any additional requirements or conditions arise, resolve those  items at that time.  Set yourself up for success and reducing your risk and money. 

The fees you pay for the appraisal and home inspection (both due at time of service).  Plus your initial deposit can be at risk if you cannot close escrow on time.  But most important is losing out on  your dream home.    This is why it is important to  work with a competent lender and getting fully pre-approved.