To Pre-Approve or Not to Pre-Approve

To Pre-Approve or Not to Pre-Approve

I’ve been getting a lot or requests for pre-approval lately. Many of our loan requests are for rehab loans, and it can be difficult to submit offers without an approval or proof of funds letter. Unfortunately most of our clients don’t have an extra 200K sitting around for the proof of funds, and many lending institutions won’t take a loan request seriously without a purchase agreement. In this market, a pre-approval letter can be a useful tool in taking that first step of getting an offer accepted, but it’s important to understand what that pre-approval means.

Our pre-approval process is an initial screening of the borrower’s income, net worth, credit, and experience. As an equity lender, this is only a portion of the information that we’ll need to underwrite a loan, but it is something we can look at before a specific property is secured to start the process. This pre-approval process puts the potential borrower in our system, speeds up the initial approval of the property, and allows the borrower to submit minimal information directly to a loan officer. Please keep in mind that the pre-approval is a useful tool, but our decision to pursue a loan is ultimately dependant on the property itself.

If you'd like to be considered for pre-approval, please submit the following:

  1. a copy of this request
  2. a completed and signed 1003 and the following signed disclosure forms. The 1003 and other forms can be downloaded at
    1. privacy notice
    2. credit report authorization form
    3. patriot act information disclosure
    4. military service disclosure
  3. a copy of your current credit report. If you do not have a credit report we can pull one for you.
  4. a resume or description of your relevant background and experience.
  5. a description of your property investment plans for the upcoming year
  6. a one-time fee of $125 to cover our pre-approval costs.

Please mail this to:

Fairfield Financial Services, Inc
2727 NE Hoyt St
Portland, OR 97232.
ATTN: Kris


Kris Gillmore
Loan Coordinator
Fairfield Financial Services, Inc