sign documents for pre-approval

[Anonymous]

So I applied for a pre-approval online with my credit union and yesterday i received an email from the LO asking to read and sign electronically a bunch of forms such as loan application, disclosure forms of credit score,  appraisal, lock rates and form 4506-T.

Is it normal for the bank to ask to sign all that for pre-approval? I'm just wondering because the bank I was working with previously( also a credit union) just did a phone interview for pre-approval.

[oldman425]

Could the other one have been a Pre-Qualified and not a pre-approval?  Reason being my Credit union pre-qual was just a phone in checking debt to income while the mortgage company that I'm doing the pre-approval with required bankstatements, paycheck stubs and taxes.

[Anonymous]

I dont think it was a pre qualification because they did pulled my credit, they both did actually. I just saw on my report yesterday.

[StartingOver10]

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@Anonymous wrote:

I dont think it was a pre qualification because they did pulled my credit, they both did actually. I just saw on my report yesterday.

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Pulling the credit is just the start. For a true pre-approval you have to supply the documents (tax returns etc) so they can see your financial situation. Just using a credit report means it is a credit approval only and can be derailed if your documentation doesn't support the approval. Where this could happen is if you take a lot of deductions like some self employed people do - and then its possible your income won't support the amount of mortgage you need.  That's why the good LO's ask for the documentation upfront so there are no surprises when you actually make an offer.