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
9
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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Buyers' Resource Section:
-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.
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