Processing Your Loan Application

Prequalification and Application Process

Processing Your Loan Application

How can I determine what mortgage amount I will qualify for?

Based on your income, your current debts and estimated down-payment, your lender can usually help you determine the maximum mortgage amount for which you qualify within minutes. Many lenders have a toll-free 800 number where you may speak with a mortgage professional or you may also reference the lender's mortgage calculator located on its Internet site. This process is frequently referred to as a "prequalification analysis". Click here to contact one of our mortgage representatives.

What is the difference between a prequalification analysis and a pre-approval application?

A prequalification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. The end product for a prequalification analysis will be a "ballpark" estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either party for a prequalification analysis.

A mortgage loan pre-approval application typically results in a written loan decision following a complete mortgage application. Many lenders will require an application fee. You can typically apply for a pre-approved mortgage prior to signing a purchase agreement for a home. Many lenders will also allow you to lock an interest rate at the time you apply for a pre-approved mortgage. A pre-approval can also add to your negotiating strength when you are ready to make an offer on a home.

What is the minimum down payment for conventional, FHA, and VA loans?

As a general rule, conventional loans are available with a minimum down payment of 5%. FHA loans are available with as little as 3-5% down. With VA loans, veterans are not required to put any money down when purchasing a home. Veterans are still required to pay for their closing costs, which includes a VA funding fee, and prepaid items. Please consult your individual lender for specific down payment requirements and programs.

How do I apply for a mortgage?

Most lenders will take your application by phone or in person. The application interview typically takes 30-60 minutes.  Click here to contact one of our mortgage representatives.

How do I determine which mortgage product will meet my needs?

Everyone's situation is different. Most people will benefit from either consulting by phone or in person with a mortgage professional who is committed to discovering your needs, and helping you match those needs with a suitable mortgage product.

Do most mortgage lenders provide construction loans?

Many mortgage lenders have construction-to-permanent financing loan programs. Programs will vary with each individual lender. Typically, a construction loan is an interim loan secured by the property on which a dwelling is being constructed. The funds are usually disbursed throughout the construction period and replaced with permanent financing once the construction is completed. You may also choose to utilize separate lenders for the construction financing and the permanent financing.

Some lenders specialize in financing mobile homes which are not permanently affixed to a foundation. Most lenders will finance double-wide homes that have been permanently affixed to a foundation.

Will there be a fee charged at the time of application?

Application fees vary according to each lender. This fee is generally used to cover the cost of the appraisal and credit report and other items required to process the loan.

Yes. Some lenders will allow you to complete the application verbally right over the phone. A copy of your application will be provided at the closing, which you will need to review and sign at that time.

What documents will typically be requested when I make application for a first mortgage loan?

Frequently lenders will request: W2's, paystubs, bank statements, and the purchase contract on the home you are buying. Documentation requests vary by loan type and lender.

Do most lenders require a homeowner's inspection?

No, a homeowner's inspection is generally requested by the buyer as a condition to the purchase of the home. Many homebuyers, however, will make the purchase of their home contingent upon a homeowner's inspection. A homeowner's inspection should not be confused with an appraisal, which is required by most mortgage lenders in order to support the valuation of the mortgage security.

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