When you’re ready to buy a home, getting pre-approved is an important first step. While some lenders offer traditional pre-approvals, Lisle Savings Bank focuses on fully underwritten pre-approvals that give you a significant advantage in your home-buying journey.
Traditional Pre-approval: A Basic Starting Point
Some lenders offer a traditional pre-approval without requiring the submission of financial documents to provide a quick initial assessment of how much you may be able to borrow based on basic financial information.
Key takeaway: While traditional pre-approval gets you started, it’s essential to understand that your final loan approval will still depend on a complete underwriting review and verification of all your financial information. Because this review is not as in-depth, issues with income, credit, or documentation can still surface later in the process, sometimes after you’ve already made an offer on a home.
Fully Underwritten Pre-approval: The Complete Process (What We Offer)
A fully underwritten pre-approval takes the process several steps further. At Lisle Savings Bank, the entire underwriting process is completed upfront at the pre-approval stage, thoroughly reviewing and verifying all your financial documents before making an offer on a home.
How it works: You provide complete documentation, including tax returns, pay stubs, bank statements, and other financial records. The underwriting team conducts a comprehensive review of your application and financial documentation, just as they would for a final loan approval. The only items pending are the property appraisal and property title work.
Key takeaway: This process gives you a much stronger commitment from the lender. While it requires more documentation upfront, this is the same documentation you will eventually have to submit when you find a home and apply for your mortgage. You can typically receive your fully underwritten pre-approval letter within 24–72 hours.
Why Fully Underwritten Is a Winning Strategy
When you choose fully underwritten pre-approval, you gain several powerful advantages in the competitive home-buying market:
- More Competitive Offer: Sellers view fully underwritten pre-approval letters as significantly stronger than traditional pre-approvals. Your offer carries more weight because sellers have much greater confidence in your financing, making you more competitive in multiple-offer situations.
- Confidence & Clarity: You’ll know exactly what you can afford and can shop with complete confidence. While final approval still depends on the property appraisal and property title work, you’ve eliminated the most common financing obstacles.
- Faster Closing Process: Since the underwriting is already complete, you can close faster once your offer is accepted. This speed advantage can be a deciding factor in competitive situations.
- Identify Potential Issues Earlier: Any credit, income, or documentation challenges are discovered and resolved before you start house hunting, not during the stressful period after your offer is accepted.
Ready to Get Started?
A strong pre-approval can make all the difference in your home-buying success. Our local mortgage team is ready to help you with a fully underwritten pre-approval and guide you through the process that works best for your situation.
Contact Lisle Savings Bank today to begin your fully underwritten pre-approval and take the first step toward making your homeownership dreams a reality. With our combination of innovative lending solutions and personalized service, we’re here to help you navigate the path to your new home with confidence.