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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