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Pre-approval
When pre-qualifying for a loan, financial
information will be requested by the lender and your credit
will be checked. The amount of the loan and quoted interest
rate will be based on the information you supply. Be candid
with your loan professional about anything in your financial
picture that might impact your loan qualification. A good loan
agent or broker will be able to assess your financial
situation and anticipate what you'll need to do to satisfy the
underwriter. If you fail to disclose accurate information to
the loan officer, when it comes time for final approval, you
may be denied, costing you money and the house.
When you put a
purchase contract on a house, earnest money is deposited, an
option fee is paid, money is spent for home inspections, the
mortgage application fee and an appraisal fee is incurred.
This money you pay out, and some of it is non refundable, so
it would be in your best interest to make sure that the loan
is indeed obtainable.
Another importance of the
pre-approval is an
assurance to the seller that financing can be obtained by the
buyer to complete the purchase.
Loan-Application
After an executed contract has been obtained,
the
loan application process will begin. This step
involves verification of financial information supplied to the
lender. You will be required to compile financial statements
and other pertinent information for delivery to the mortgage
company.
Also, keep in mind that
any large purchases you're thinking about making such as furniture,
expensive appliances, new cars, lawn tractors and such, should be acquired AFTER
YOU BUY THE HOUSE. Large purchases and credit card run
ups incurred prior to closing could be detrimental to the
transaction. A change in your financial picture could cause
loan requirements to fall out of conformity subsequently preventing the house from closing.
Financing Your New Home
The information provided on
this page should assist you with your financing needs. Use
these links to obtain the latest information about loan
programs,
Mortgage companies,
interest
rate,
mortgage calculators,
investor stated income loans, monthly
payment estimating and
information to have when shopping for a
loan.
Be Aware of Unsavory Lending Practices
Lowball scamming is the practice of quoting
a price to a borrower below the price the lender is actually
willing to accept. The purpose is to be selected by borrowers
who believe they can shop price. Lowballing is endemic on
Internet-based referral sites, which display price quotes
by dozens or hundreds of lenders.
Market-volatility scamming exploits
borrowers already onboard but not yet locked by taking
advantage of changes in the market. If market prices increase,
the borrower is charged the higher price, but if market prices
decrease, the borrower is charged the price quoted earlier. In
the second case, most borrowers are content to receive the
price they were quoted earlier.
Property-valuation scamming exploits
borrowers whose loans have been locked before their home
appraisal has been received. If the appraisal comes in lower
by enough to raise the loan-to-value ratio past a notch point
where the price increases, the lender increases the price
accordingly. But if the appraisal comes in higher by enough to
reduce the loan-to-value ratio past a notch point where the
price should decrease, the original lock price is retained.
Items
needed when you (apply)
for a loan
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