Understanding the Mortgage Loan Application Process
- Pre-Qualification: This is an informal process where you are interviewed by a mortgage professional about your income and expenses. This will really only give you a general idea on the price range you can afford, but will not bring you closer to securing a mortgage.
- Pre-Approval: When you are pre-approved, the lender has looked closely at your credit reports, employment history, and your income, and has determined that you can make a necessary down payment and your income can cover mortgage payments. This will determine the maximum amount you can borrow and the interest rates you will be offered.
- Mortgage Commitment: A lender will issue a loan commitment after it has been approved by both you and Regency. Your loan representative will submit your complete application to the underwriter, which the underwriter will then decide if you are approved, approved with conditions, suspended (need more documentation), or denied.
Your First Steps
Check your credit score before going to get pre-approved for a home loan. This will give you an idea on what kinds of loans you qualify for and can give you the chance to clear up any problems with your credit report. You can obtain a free credit report at AnnualCreditReport.com or Credit.com.
The actual process of getting pre-approved is rather simple. You will meet with a lender so they can determine if you are qualified to take out a home loan. Bring the following to the meeting with your lender:
-Pay stubs, tax returns, and W-2’s from the previous two years.
-Documents to show other sources of income, like a second job, overtime, commissions and bonuses, VA and retirement, and others.
-Your lender will want to know any other assets you have, such as a family or friend giving you money, which you will need to include a gift letter showing it is not a loan.
-Make sure to bring a form of ID and Social Security number
Regency’s Approved Lenders
Regency prefers that you refer to our “Preferred & Approved Lender List” when getting pre-approved for your mortgage. If you use a preferred or approved lender, then your closing costs will be covered through Regency Homebuilders!
**Closing Costs are not covered for Frontgage, Chadwick, and Fleming Ridge**
Click here to see our Approved Vendor List!