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simi valley realtor - It will also give them your credit score, or your credit rating. If the credit score falls within the acceptable range for the program that you're interested in, you become pre-approved. If your credit score is too low for your preferred loan program, your lender will discuss your credit report with you. Some erroneous information on the report that can be removed to improve your rating, or perhaps you have a situation that the lender will allow an exception. If you don't qualify for a particular program, there may be another program that best fits your situation; your lender is there to help you work through this process and find the right loan for you. Once this phase is completed, most lenders consider you pre-approved for a home loan. However, to help you avoid making the common mistake of extending an offer beyond your buying power, Quicken Loans takes the pre-approval process one step further. When Quicken Loans receives your application and documentation, we verify your employment and financial information to ensure it is within our underwriting guidelines. As long as your financial picture does not drastically change, after it has been confirmed, you're approved - with the condition that the home you are purchasing appraises for the purchase price. This extra step solidifies how much home you can purchase, and strengthens
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your negotiation power with re_altors and sellers. Most lenders require a small fee to apply for a loan, which is typically used to cover the cost of the appraisal and credit report. You will pay this fee up front because the lender has to obtain an appraisal in order to approve your loan. Regardless, if you decide to go through with the loan and purchase the property, the lender has to pay the appraiser and the costs to obtain your credit report. Final approval is when you have found your home, it has been appraised, the title report has been received and everything has been found to be acceptable to the lender. Once you receive final approval, you're ready to close. Knowing the difference between getting pre-qualified and getting pre-approved can help you avoid costly mistakes - including bidding on a home that is outside your price range. HUD-1 Settlement Statement: This form lists all closing costs and other monies payable at closing in connection with your mortgage loan. It includes loan fees, points and sums set aside for escrow payments, such as taxes and insurance. On purchase transactions, re_altor commissions and tax prorations may also be included. Truth-In-Lending Statement: This federally mandated form sets forth the "Annual Percentage Rate" (APR) on your loan, which is your interest rate adjusted to account for points and other closing costs.
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