Getting mortgage loans preapproved.

Because the mortgage industry is heavily regulated by Federal and State Banking Laws, there
tends to be a great deal of uniformity in how things get done. So, the information, policies and
procedures you read here, and throught the MortgageMatch website, are not necessarily specific
to MortgageMatch, but apply to the entire mortgage industry as well.

One of the procedures which is handled the same way throughout the industry is how borrowers get
preapproved... and this is not to be confused with prequalified. Borrowers are actually subject to three
different approvals in the course of the complete mortgage process... each at a different stage. And, this is
true whether a loan is being obtained to purchase a property, or to refinance an existing mortgage.

The first two "approvals" extended are popularly referred to as "preapprovals". The very first preapproval,
which is actually a prequalification, is determined by the Loan Consultant, who after obtaining the required
information from the borrower, will understand the basics of the borrower's credit profile and what type of
financing is desired. This preapproval is based on the Loan Consultant's opinion supported by his or hers
overall experience and knowledge of mortgage programs. And, whether the borrower's answers about
credit, income and DTI satisfy the minimum requirements for obtaining a mortgage.

The second preapproval, which is the strongest, will be extended by the direct lender who will actually
be funding the mortgage. This preapproval comes in fast order after the first preapproval. And, to many
borrowers, it will seem as though these two preapprovals were extended simultaneously, or are, in fact,
one in the same.

Among the significant differences between the first and second preapprovals will be that the second comes
with a list of conditions which muct be satisfied for the third and final approval to be granted. These
conditions or stipulations are usually verifications of one kind or another, which are initially performed by
your Loan Consultant and/or Processor. Statements, which were made on your mortgage application, like
your place of employment, length of employment, rent or mortgage history, where you have your checking or
savings account, and so on, are verified usually by the use of a written form. These verifications very and not
all borrowers are subject to the same kind of verifications. A valid field appraisal on the property being
purchased or refinanced is also a typical condition to final approval.

Another difference in the second preapproval is that the lender will quote accurate interest rates and
terms for the mortgage program being applied for... and these offer or offers confirm your preapproval, and
move you toward final approval.

At this point, if you're purchasing a property, you're a preapproved buyer ready to go house hunting.
If you're refinancing a mortgage, your next step will be an appointment with an appraiser.