the buyer’s submitted information and making sure it matches with the requirements of the loan product. The underwriter will focus on matching the applicant’s income, assets, credit information, property title, and home appraisal to the guidelines. During this process the underwriter may seek clarification or the further explanation of some of the information. These queries are referred to as "conditions". Once the conditions have been satisfied by you as the borrower the loan can be moved towards the closing department. ORIGINATION: PRE-QUALIFICATION, PRE-APPROVAL, A TBD (TO BE DETERMINED) C TERMINED) COMMITMENT LETTER The first step in the lending origination process can be a pre- qualification letter, a pre-approval letter or a "To Be Determined" (TBD) commitment. Many real estate agents require a pre- approval letter or proof of funds before taking you on as a client. This assures them, and later assures the seller's agent and the seller, that you have the financial capacity to complete the deal. With the drafting of a pre-approval letter, the lender pulls credit from all three bureaus, receives the FICO scores, analyzes the debts, verifies the prospective buyer’s income, down payment amount and source, liquid reserves available after closing, and ensures that income tax returns have been filed if that is a requirement of a particular product. Often the pre-approval process includes running the application through desktop underwriting. This confirms that the profile of the borrower conforms to the basic requirements of a particular loan instrument. The pre-approval is a very strong indicator that the borrower will be approved as long as their key information does not change before its time to close the loan. According to the Consumer Financial Protection Bureau (CFPB) “Prequalification and preapproval both refer to a letter
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