Types of Agents
How to Select an Agent
Prequalified or Pre-Approved
7 Reasons to buy a home
Moving with Teenagers
How to Find a Home
50 "Things To Watch"
when viewing a home
8 Types of Loans You Should Know
What is a Sales Contract
Finding Quality Inspectors
10 Ways to Ascertain a Down Payment
How Lenders Approve Loan Applicants
Definitions of Closing Costs
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-How Lenders Approve
Loan Applicants-
Excellent you have pre-qualified for a set amount of money. You have
chosen a home. Now you need the lender to approve you for the loan
on this purchase. You have the whole application "package" filled
out. Why on earth does it take so long to get approved for my loan.
Well while you are anxiously awaiting word on whether you can have
that house, your lending agent is doing the following things;
- Appraising the home to determine if the house is worth what
you are paying for it.
- Verifying employment, credit history, debt paying ability,
to determine the risk.
- Verifying accounts have adequate funds to satisfy closing and
down payment responsibilities.
- Ordering a slew of inspections on the home to determine it's
structural integrity, check completion of repairs agreed upon
by seller and buyer, check for termite infestation, and more.
- Ordering the title search through some sort of legal representative.
This ensures clear transfer of title to you after the purchase.
- Verifying hazard insurance coverage is adequate in the event
of fire, smoke, hail, tornado, hurricane, etc. This step ensures
the home investment is protected from major loss.
Once all of the hurdles above have been cleared, the
lending institution's loan committee will review your application.
This committee will either approve or deny your application. Once
approved you will receive written confirmation of the amount, rate,
and payment. The lending institution will then request a signed confirmation
so that they have the final contract in writing. |
