Approval Process

It can be challenging to understand when you have a loan approval and what a loan approval is. The term loan approval is used loosely between loan originators and borrowers. Borrowers typically think it means approval. But for all loan originators, the term "loan approval" is always conditional and doesn't usually mean what a borrower expects, which is a commitment. It's a mortgage broker's job to know whether they can obtain a commitment without a lender's formal dedication. Lenders will ultimately commit to any borrower once all loan risk factors have been reviewed and satisfied. It's our task to help you understand the stages of the loan process, in addition to meeting the requirements through the process.

Pre-Approval

TBD Approval

Conditional Approval

Final Approval

Pre-Approval

The pre–approval process happens after we have discussed general terms and requirements. We gather your information to review so we can provide real options. The review process involves an in-depth review of your income, assets, credit, liabilities, employment, and any other property you own. After we complete the review, we shop and confirm your loan options with our lenders before presenting and confirming with you.

TBD Approval

TBD approval is like a pre-approval but is also underwritten by one of our lenders. It adds an extra level of certainty to your loan approval. A TBD (To Be Determined) approval is to help any seller in a purchase situation understand that a lender has reviewed and conditionally approved your loan in addition to the broker’s pre-approval.

Conditional Loan Approval

Conditional Loan Approval is the result of the lender's initial loan review. It's a loan approval subject to certain conditions before receiving the final approval. The loan conditions often include:

The review of a completed appraisal report.

Verification of employment.

Sourcing of downpayment and closing funds verified by the lender.

Final Approval

Final Approval lenders know this as a clear-to-close, but it is still not a binding commitment. The final approval is written after meeting the conditions of the conditional approval. This is where most lenders begin preparing your loan documents for signing. Final approval typically takes 16 to 18 days to obtain. However, depending on the loan program, it can be written as early as a week or two into the process.