When starting your 2026 pre-approval or formal loan application, many buyers feel lost as documents pile up in their inbox. An email asks for your signatu… but what is this document? Why is it asking for credit card authorization? The uncertainty can be stressful.
That’s why Loaning.ai is breaking down the six critical documents you must complete in Step 1 of the mortgage process—clearly and in detail. 🔥
Why You Should Start Loan Setup Now — 2026 Pre-approval
Think of Loan Setup as finalizing architectural plans and permits before you build a house.
This is the stage where your loan structure is entered into the system and legally required cost estimates are issued—officially asking:
“Do you want to proceed under these terms?”
Only after your consent can the lender move forward with underwriting and appraisal orders.
This step is essential for protecting your rights as a borrower.
Step 1: 6 Required Documents for 2026 Pre-approval
In this stage, borrowers review and sign six documents, usually through DocuSign for convenience.
Let’s walk through each one.
Uniform Residential Loan Application (URLA)
- What it includes: Name, Social Security Number, income, assets, and current address.
- Check carefully: Confirm all details with your loan officer—one typo in your legal name can delay everything later.
Borrower Authorization & Certification
- Purpose: You are authorizing the lender to verify your employment, contact the IRS for income records, and confirm the information you submitted.
- How it’s signed: Typically via DocuSign—fast, secure, and legally binding.
Initial Loan Estimate (LE)★★★
- What is it?: After the 2008 financial crisis, the government created this standardized form to protect consumers. It clearly discloses the interest rate, monthly payment, and total closing costs—without hidden charges.
- Why is it important?: You need this document to objectively compare costs across different lenders (to “shop around”). During the 2026 pre-approval process, it also serves as a baseline for estimating your overall expenses.
Intent to Proceed
- Meaning: After reviewing the Loan Estimate (LE) and confirming the terms, the borrower officially tells the lender, “Yes, I would like to proceed with the loan under these costs and conditions.”
- Important: The borrower must sign at this stage for the lender to order the appraisal or charge underwriting-related fees. In other words, if this is not signed, nothing moves forward.
Credit Card Authorization Form
- Purpose: To pay for third-party fees incurred during the loan process.
1. Credit Report Fee: Paid to the credit reporting agency.
2. Appraisal Fee: Paid to an outside appraiser who evaluates the home’s value. - Don’t worry: These are not lender profits—only the disclosed amounts are charged in advance.
Purchase Contract
If you have already found a home and your offer has been accepted, you must submit a copy of the Purchase Agreement.
- Role: Required for entering accurate details into the system, such as the property address, purchase price, escrow period, and seller information.
2026 Pre-approval Is a Race Against Time
Next year’s housing market is expected to move fast.
Many buyers delay signing Step 1 documents while watching interest rates—but the real start of your loan happens once you receive the LE and sign the Intent to Proceed.
Delays here mean:
- Appraisals get pushed back
- Underwriting stalls
- You may miss closing deadlines
- You could lose the home entirely
✓ Clear explanations — We don’t just say “sign here.” We walk you through every LE line in Korean.
✓ 100% digital — No paperwork. Everything is signed via email and smartphone.
Apply for Your 2026 Pre-approval Today
Check your optimal loan options in just one minute—with a soft credit pull that won’t lower your score.
Loan Setup Documents at a Glance
| No. | Document | Key Details & Checkpoints | Completed |
|---|---|---|---|
| 1 | URLA (Loan Application) | The standard mortgage application form. Check basic details such as the spelling of your English name. | |
| 2 | Borrower Authorization | A form granting the lender permission to verify employment and income. Usually completed via DocuSign. | |
| 3 | Initial Loan Estimate (LE)★★★ | The most important document. Used to objectively compare interest rates and closing costs. | |
| 4 | Intent to Proceed | The step where you officially agree to move forward with the loan after reviewing the LE. Signature is required. | |
| 5 | Credit Card Authorization Form | Authorization to pay third-party fees such as credit report and appraisal costs. | |
| 6 | Purchase Contract | A document needed for entering the purchase price and property address accurately. (Can be omitted during the pre-approval stage.) |
