The document outlines the three main steps in securing a mortgage: pre-qualification, pre-approval, and full loan approval. Pre-qualification provides an estimate of a borrower's loan eligibility based on limited financial information. Pre-approval requires a full loan application and documentation review for a written loan commitment. Full approval occurs after selecting a property, when an appraisal, title search, and underwriter review are completed to finalize the loan.

1. APPLY BEFORE YOU BUY
Pre-Quali cation, Pre-Approval, and Full-Loan Approval
Pre-Qualification
The first step in securing a mortgage – pre-qualification estimates how much money you can borrow based on the
income & debt information you provide to a Loan Officer. Your credit report will be ordered to obtain up-to-date
FICO scores & credit history. This quick snapshot allows the Loan Officer to determine if you’re a good candidate
for a mortgage. It may also help the Loan Officer provide steps needed for you to qualify for a mortgage. It does
not, however, guarantee that a lender will approve your application.
Pre-Approval
Once pre-approved for a mortgage, enjoy shopping for a home and to be taken seriously by sellers with your proof
of purchasing power. You will complete a 1003 Loan Application and submit appropriate documentation for review
by the Loan Officer (and possibly an Underwriter). A written commitment is then issued by the lender after a
comprehensive analysis of your creditworthiness with a dollar amount you qualify for (along with any conditions
and additional documentation needed to secure the mortgage). Your Loan Officer will detail the loan options that
best suit your needs.
Full Loan Approval
The final step in securing a mortgage is full loan approval. Once you decide on a property to purchase, provide a
copy of the completed Real Estate Purchase Contract to your Loan Officer – so that an Appraisal and Title Search
can be ordered. Next, a loan processor will verify the documentation. An underwriter will then review the reports
for completeness and confirm the property appraises for the sale price. Any conditions & additional requirements
will be conveyed to you through your Loan Officer. A second credit report may be necessary to confirm that nothing
has changed since you first applied for the mortgage. Once completed, a final approval will be issued allowing you
to close on the loan. Then get ready to move – you’re a homeowner!
Scott Schultheis
Senior Loan Officer
LO NMLS #819270 AZ License #0918967
PHONE: 480.767.7886
CELL: 480.420.9239 15333 N. Pima Road
FAX: 877.820.8957 Suite #205
Scottsdale, AZ 85260
scott.schultheis@academymortgage.com
www.academymortgage.com/scottschultheis
With Academy – loans close quickly.
Company License # 0904081 Company NMLS ID # 3113 EQUAL HOUSING
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