The Pre-Approval Process

Posted on January 24, 2018 · Posted in Connecticut First Time Mortgage, Connecticut Mortgage Company

The Importance of a Pre-approval Process


Before you start your home search and start the process to qualify for a mortgage loan, it’s important to understand the differences between a mortgage pre-qualification/ pre-approval (these terms are really one in the same) and a conditional loan approval. It’s easy to confuse these terms, and even experts incorrectly use them interchangeably from time-to-time. Each of these has a different level of approval, and can cause your timeline to vary greatly with regard to how quickly your offer is accepted. Here’s an overview of the differences.


A Prequalification  or what is called a pre-qual is when a loan officer receives information about your income or credit – It’s a quick way for them to determine your ability to qualify for a loan. They will run your credit report, and also might look at your pay stubs, bank statements, W2′s, and tax returns. This will help them best determine if you qualify.


Once this has been done by your loan officer and he or she determines that you will qualify to move forward – then he/she will submit your loan to be underwritten. Once underwritten you will receive what is called a conditional loan approval.  The conditional loan approval is the highest form of approval (prior to a” Clear to Close” a Loan) from a lender because it is saying you will be approved for a loan if you meet our conditions.  The issue is that you can not get a conditional loan approval without having identified the property first – so getting this kind of approval is impossible in the beginning of your property search.


If you are competing with multiple buyers for a home, sellers will often give preference to a buyer with a conditional approval because of the added assurance that the loan will close.  To do this you will need your loan officer to move quickly in that it can take anywhere from 6 hours – 48 hours to get the conditional approval back from underwriting.  So you will need to work very closely with your loan officer.


So in conclusion I can not stress enough how important this process is when buying a home – it will save you a lot of time and heartache –  if you work with your loan officer from the beginning to get your pre-qual and then once the property is identified to get your conditional approval.


Call me today for a free consultation and we can discuss your rate options.


Thank You,



Patrick Walsh
Mortgage Loan Originator/NMLS 99004
210 S. Main St Middletown, CT 06457


Company NMLS#117273