The Approval Process

After you've submitted an application, the lender will verify the information you provided and obtain a copy of your credit report. Taken together, this information helps the lender assess the degree of risk involved in lending you money.

If you have excellent credit, sometimes a lender can approve your application within a few minutes. Other times, a lender will need additional information to render a decision. For example, a lender may ask you to explain any unfavorable information that appears on your credit report, or the loan may need to be restructured to meet the lender's underwriting guidelines. If your application is approved, the lender will send you a "commitment letter", outlining any remaining conditions that will need to be met in order for settlement on the property to occur. The lender will order an appraisal to determine the fair market value of the home, order a title search of the property, and give you the option of locking in your interest rate.