Very important letter/document in the Loan Process. This will allow Lenders, Landlords, Banks, or any other person to give your Mortgage Professional access to your personal information. Make sure you have signed this document once you have chosen your Mortgage Professional.

For example your mortgage agent will need this in order to obtain your current payoff if you are doing a refinance, the loss payee changed on your homeowners insurance, pension or social security awards letters etc..

The Authorization gives the loan officer the power to act on the borrower's behalf to getting a mortgage and only on matters in association with getting the said mortgage. By law, without the signed Borrower Authorization, the borrower's bank, with whom the borrower has a checking/savings account and keeps the funds for downpayment and necessary closing costs, is not allowed to disclose any personal financial information regarding the borrower or his checking/savings accounts. Therefore, no verification of funds could be performed without it. In many states, loan officers are also required to have the borrowers' consent before ordering credit reports. The Borrower Authorization Form is one of the documents that a borrower must sign in order to start the mortgage application process.

This one document allows your mortgage professional to accomplish more than any other document you will sign. In addition to verification of funds, handling insurance changes, and pulling credit it allows your mortgage professional to order verification of rent if necessary.

A lender informally determines the maximum amount an individual is eligible to borrow.

A Pre-qualification is intented for a potential homebuyer to evaluate his ability to repay a mortgage. The process is relatively simple and fast. It involves a loan officer interviewing, either in person or over the phone, the potential home buyer with regards to his financial situation. Base on information provided by the homebuyer, the loan officer is able to determined how much of a mortgage loan the homebuyer can afford. It requires no actual financial documentations. A Pre-qualification differs from a Pre-approval in that the Pre-approval process is more in-depth and requires financial documentations, such as paystubs and tax returns, from the potential borrower.

You will also be given information such as the the interest rate the loan amount and the monthly payment.

A pre-qualification is based on preliminary information provided from consumer to broker. THe pre-qualification is not a commitment to lend, but merely a guide to what you can afford based on intial information such as credit and income.

You can get a pre-qualification for a certian rate and have that change due to verification of documentation, such as employment status, income range or funds to close. It's very important to get your documentation to your mortgage broker as soon as possible so he move from the first step to the second (Pre-Qualification to Pre-Approval).