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How do you Know When your Mortgage Loan is Approved


The Spire

When your mortgage loan is approved, your lender will notify you of the initial approval and if there are any conditions or additional information needed for final approval. However, the underwriting process could be delayed if the underwriter finds there was any documentation missed or inaccurate information in your initial application.




As the name suggests, it’s the first step to mortgage loan approval. Different lenders have different pre-approval stages. Most lenders will have a loan officer do an initial review of your application and supporting documentation.  Once reviewed the loan officer will make a decision and if it’s decided you qualify they will issue a Pre-approval for a certain loan type, amount, and terms.  In Arizona, this Pre-Approval is given on a state-specific form called the AZ-PQF.  This form can be used to make offers on the property you wish to buy.    


Conditional Approval

You might get conditional approval in some cases, especially if your application has some gaps or lacks proper documentation. Your loan can’t get formal approval. A loan officer will contact you and tell you that your mortgage has been conditionally approved. At this stage, you can find your dream home, but you’re limited to purchasing it until further directions from the lender.


Formal Approval

It’s the final approval after the lender has analyzed and confirmed everything, including meeting the requirements. After the formal approval, you can go ahead and buy the home you’ve been dreaming of having. After the approval of the Arizona mortgage loan, the lender will provide and ask you the following:


– Disclosure forms

Lenders are required by the law to provide disclosure forms to the borrowers after the approval of their loans. These forms give an in-depth analysis of your closing costs and settlement.


– Commitment letter

After the formal approval of your Arizona mortgage loan, the lender will provide you with a commitment letter. This letter shows the loan terms and conditions. Its contents are the monthly installments and the APR.


– Closing conditions

Lenders ask borrowers to give out their property insurance policies, title and flood insurance, survey reports, and home inspection reports. After you give out a copy of these requirements, you’ll sign some documents and close on the mortgage.


In conclusion, whether your mortgage loan will be approved or not will depend on factors like your credit score, debt to income ratio, work history, down payment, and the condition of the property you want to buy.


A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.