When is an approval really an approval? When is an approval only a conditional approval? Below are the different levels of “loan approval” you can get for a mortgage:
1. Pre-Qualification:
This is done before you make an offer on a home. This is only a loan officer analysis, and supporting financial documents are not required. This is a review of the applicant’s income and debts using standard methods of determining housing and debt ratios to indicate the maximum loan amount for which an applicant would qualify, subject to the satisfactory appraisal, further verifications of income, employment and credit history. This is the lowest form of analysis you can have done.
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Tags: approval process, mortgage approval, pre-approval, pre-qualification
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A home inspection protects the buyer. It’s meant to uncover potentially serious issues with the home so that you understand what you’re buying.
In a competitive market, some buyers walk through the home with an inspector before making an offer on the home. This gives them the confidence to formally waive the inspection contingency when they make their offer, possibly putting their offer in a stronger position to be accepted. However, a home inspection may identify the need for major repairs or builder oversights and minimize unpleasant surprises or unexpected difficulties. Read the rest of this entry »
Tags: home buying process, home inspection
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Conditional Approval Mortgage
So you’re applying for a mortgage, you think you have everything lined up right, you get pre-approved. Great! And then you get… conditional loan approval? What is that? What are the conditions? Read the rest of this entry »
Tags: conditional approval, credit report, loan approval, loan process
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For most people, your ability to get approved for a mortgage, and the terms you’re offered, depends on your credit report and your history of managing debt responsibly.
Under some circumstances, your credit score can be affected by loans you’re not even responsible for paying. Read the rest of this entry »
Tags: credit, credit cards, mortgage application
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If I had one dollar for every person that said, “Please tell me what I can qualify for but do not pull my credit because I know it hurts my credit score,” I would have enough money to make a large down payment on almost any house I wanted. Read the rest of this entry »
Tags: credit, credit score
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When you’re ready to buy a new home, one of the first things you have to do is take steps to get your financing in place. Mortgage approval is based in part on an automated underwriting process. Unless you plan to pay in cash, you need to secure a mortgage loan. It is beneficial to get a pre-approval letter from a mortgage lender before you even make an offer. Having your loan pre-approved can show a seller you are a serious buyer with adequate funds. You can also reduce the risk of the contract falling through.
Lenders typically use one of two underwriting processes for mortgage loans: automated and manual. Understanding the basics of how these types of loan approval work can give you confidence when applying for your mortgage. Read the rest of this entry »
Tags: Automated Underwriting, loan approval, manual underwriting, pre-approval, underwriting
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Homeownership is a major component of the American dream as it provides you with your own piece of property to put down roots and live your life. You might think the process starts when you first go out hunting for houses or condominiums, but it often begins long before the initial meeting with a realtor when you contact a lender for pre-approval. Homes are major purchases, and it’s understandable that you have to meet certain qualifications before the transaction goes through. Here are a few reasons why the seller and realtor might want you to get pre-approved, as well as an overview of the entire process. Read the rest of this entry »
Tags: homebuying, pre-approval, pre-qualification
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When you’re beginning the home-buying process, figuring out what you need to get your mortgage loan can seem complicated. You may even be tempted to find your dream home first before you apply for a mortgage. However, going through the pre-qualification and pre-approval processes at the start of your search can make the entire experience go more smoothly.
Before you meet with a lender or mortgage broker, you should have a good understanding of how the loan process works and what you’ll need to provide in your application. This guide covers the basics of loan application, qualification, and approval. Read the rest of this entry »
Tags: homebuying, pre-approval, pre-qualification
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Shopping for a home means coming to understand a world of legalities designed to help protect the process of property transactions in the United States. That means learning about the various stages of investigation needed to transfer ownership with confidence. Home inspections, appraisals, title searches, and other steps inform buyers and sellers of possible complications with the sale. When it comes to navigating these requirements, homeowners need to understand their obligations and the mechanisms built to protect them, such as owner’s title insurance. Read the rest of this entry »
Tags: lenders title insurance, owners title insurance, title insurance
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New home purchasers can get caught up in a wire fraud scam in a mortgage transaction by cyber criminals if they aren’t careful! This type of fraud is happening more often. Some borrowers are fortunate enough to have a bank that recognizes that money is being sent to a suspicious account and the wire gets stopped. Otherwise, the mortgage borrower can lose their entire down payment on the house. Once a wire goes out to another bank it’s almost impossible to pull it back, even when Read the rest of this entry »
Tags: fraud, mortgage, mortgage scam, mortgage transaction, mortgages, purchasing a home, wire fraud
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