Blog Category: pre-approval

August 5th, 2018 approve or reject
August 5th, 2018

Automated Underwriting Versus Human Underwriting

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. 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 More

Categories: Home Buying Process, Loan Process, mortgage, Underwriting Rules, , , , ,

May 23rd, 2013 feet socks lazy
May 23rd, 2013

Do Not Wait Until You Need Pre-Approval To Get Pre-Approved

I have discussed this topic before, but it bears mention again. Homebuyers almost always wait until the last second to get pre-approved. Why? If you know you are interested in buying a home, and if you are in fact actively looking, why wait? Homebuyers seem to think the pre-approval process is instantaneous. It is not. It is not even quick and it certainly is not easy.

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Categories: Loan Process,

March 25th, 2013 bored girl
March 25th, 2013

DON’T WAIT!

Most humans I know wait to do things. And wait as long as they can. Even for a mortgage, they wait and take their time in submitting the needed documents. I procrastinated as a child when it came to cleaning up my room. I did it in college when it came to studying for an exam. And I do it as an adult when it comes to going to see the dentist. The only things that I do not procrastinate on are things that are really important, like getting pre-approved for a mortgage. Now that is important! That should be done right away. Read More

Categories: Loan Process, Underwriting Rules, , , , ,

April 16th, 2012 confused 5201278 1920
April 16th, 2012

Extra! Extra! Lenders Do Not Know How To Pre-Qualify Homebuyers!

It has been a while since I wrote about pre-qualification. It seems I need to write about this more often. Lenders hand out pre-qualifications like candy, with little analysis, little required documentation, and then homebuyers go out into the marketplace making representations they cannot meet. And then they lose money. How? Read on. Read More

Categories: Underwriting Rules, , ,

July 15th, 2018 paperwork stack
July 15th, 2018

How Much Documentation Needs To Go Into a Pre-Approval Letter?

Today’s real estate market can be competitive for everyone. That’s why it’s important to understand the ins and outs of the home buying process before you hit the market. Let’s talk about what getting a mortgage pre-approval letter. It’s a good idea for anyone heading into the market for a new home. Read More

Categories: Loan Process, mortgage, Underwriting Rules, , ,

May 22nd, 2019 onerous paperwork image
May 22nd, 2019

Mortgage Paperwork Is Getting Easier

Here at Capital Bank Home Loans we have a new dynamic loan application that we use, to help ease the mortgage paperwork. Being dynamic means that it can potentially verify your assets and income during the application process, allowing you to avoid having to upload any documents. And of course we all love to avoid mortgage paperwork!

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Categories: Loan Process, mortgage, Refinance, Sales, Underwriting Rules, ,

October 28th, 2009 You are OK
October 28th, 2009

Mortgage Pre-Approval, Why Do It?

Mortgage pre-approval, why do it? It seems many home buyers feel they already have a “good enough” idea of what amount of mortgage they qualify for. So they don’t feel the need to consult a mortgage professional in advance of their home search. Or they use some quickie online tool that helps tell them what they are qualified for. But those are really not thorough enough and don’t take into account all the complicated new rules.

And some people have champagne taste and are on a beer budget, and need to be careful in determining how much they can afford to spend on a home.

I can’t say this loudly enough, DON’T WASTE YOUR TIME OR YOUR REALTOR’S TIME looking at a single home until you have had your finances thoroughly analyzed by a seasoned mortgage professional. Read More

Categories: Underwriting Rules,

June 3rd, 2018 qualification
June 3rd, 2018

Pre-Approval Letter Versus Pre-Qualification Letter: What Is the Difference?

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. This guide covers the basics of loan application, qualification, and approval. Read More

Categories: Home Buying Process, Loan Process, Underwriting Rules, , ,

November 28th, 2017 pie chart
November 28th, 2017

What Portion of My Income Should I Spend on a Mortgage?

What portion of my income should I spend on a mortgage? Deciding on how much mortgage you can afford is very complicated with several things to consider. Before you plan to spend the maximum amount you’ve been approved for, consider what you feel comfortable with. And don’t treat your home purchase like a zero-sum game. Consider spending a sufficient amount to buy enough house to keep you happy for a longer period of time. This is due to the hefty transaction costs of real estate. Read More

Categories: credit, housing values, mortgage, , , , , ,

March 24th, 2019 hd wallpaper 7075492 1920
March 24th, 2019

When Is A Mortgage Really Approved?

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:

Pre-Qualification:

Pre-qualification is done before you make an offer on a home. It is only a loan officer analysis, and supporting financial documents are not required. Only a review of the applicant’s income and debts are done. Standard methods of determining housing and debt ratios are used. This can help indicate the maximum loan amount for which an applicant would qualify. But it is 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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Categories: Home Buying Process, Loan Process, mortgage, Underwriting Rules, , , ,

June 24th, 2018 hd wallpaper 7075492 1920
June 24th, 2018

Why Do Sellers and Realtors Want Me To Be Pre-Approved?

Always get your mortgage pre-approved! Homeownership is a major component of the American dream. 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. Here are a few reasons why the seller and listing agent might want you to get pre-approved. Read More

Categories: credit, Home Buying Process, Loan Process, mortgage, , ,