Related Terms: Online Loan Approval, Funded Loan
When applying for a mortgage, borrowers are hoping for the loan to be approved. This is one of the outcomes that follow the submission of the loan application, where the borrower is considered to qualify for the mortgage.
After the pre-approval, you will be required to submit the loan application along with supporting documentation to your loan officer. This is then submitted to the underwriter who will determine whether you meet the requirements for the loan. There are four possible responses: approved, approved with conditions, suspended, or denied; as a borrower, you’re hoping for the first!
It is important to keep in mind that the mortgage process can be derailed even if the loan has been approved. Lenders are checking your credit score regularly, right up to the time of closing. Therefore, staying on top of your spending and payment habits and keeping an eye on your credit report until the settlement date is a good idea.
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