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What is the difference between "Mortgage Commitment" VS "Final Approval"

by lori.matthews878 from Peoria, Arizona. Jul 13th 2015 Reply

Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

mortgage commitment is after credit, has been pulled , loan application , it is like a preapproval, and final approval is after underwriting has been performed, conditions have been met , and loan is locked and ready to draw the idocs for signutures

Jul 13th 2015
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

A Mortgage commitment is a fancy way of saying your "pre-approved".. and even a "Final Approval" is not 100%.. although it's close.. until your loan actually funds, anything can happen.. Depending on the expertise of the person or company your dealing with, pre approvals are sometimes given out like free drink coupons.. When a loan officer pulls your credit, looks at your bank statements, pay stubs, tax returns, w2's and verifies the necessary funds to close, and after looking at all of that, he says your pre approved, then it's usually fairly certain.. For a no cost 2nd opinion, i would be happy to look at your scenario. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

Jul 13th 2015
Joe Metzler (JoeMetzler)
#18 ranked lender in Minnesota - 3,981 contributions

Pre-qualification. I've talked to you and it sounds good. Pre-approval, I've taken an application, looked at basic documents, and it looks good. Mortgage commitment is very confusing on the other hand. Some deem it the same as the loan being 100% done (final approval). This essentially means the application, appraisal, and everything else have been reviewed and fully approved by underwriting to get a "clear-to-close". Even this is confusing, because there are still last minute items that can derail a loan before getting to the closing table. For example, lenders must re-verify employment with in just a few days of closing. The only time your loan is finally done, is when you have signed and walked away from the closing table. Sounds scary, but if the application is looked at correctly at the beginning, the rest is more of just crossing T's and dotting I's. This is also why it is very important to select a great Loan Officer, not just the person who answers the 1-800-Big-Bank phone number.

Jul 14th 2015
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