Pre approved for a home loan?

already signed the purchaser/seller contract whats next and when do we find out if we actually are Approved I though approval took only 24-48 hrs to know for sure

5 Answers

Relevance
  • 8 years ago
    Favorite Answer

    You should have been pre-approved prior to seeking a property to purchase.

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    "FIGHT ON"

    • Login to reply the answers
  • 8 years ago

    Have you given the lender your tax returns, bank statements, pay stubs etc? Has the home been appraised yet? Once all this is done it goes to underwriting & the underwriter makes the final approval. A pre-approval takes 24 to 48 hours. An approval takes about 30 days.

    Source(s): mortgage lender 26 years.
    • Login to reply the answers
  • 3 years ago

    Getting pre accepted for a house mortgage simply allows you to understand how a lot the financial institution is inclined to can help you borrow to shop for the house. It allows you to understand what cost variety of house you'll appear at. Next, when you prefer the house, the house need to meet detailed requirements and be applicable because the collateral for the mortgage the financial institution is approximately to deliver you. The mortgage are not able to be accepted if the condominium isn't applicable and with out an appraisal and an inspection, there's no technique to understand if the condominium will cross. It truthfully is helping guard you from matters you may also no longer have spotted even as watching on the house. Bad foundations and termite harm don't seem to be constantly visible to the untrained eye, however the inspector will trap matters like that and prevent and the financial institution a gigantic headache afterward. And the appraiser is helping certify that the house is truthfully worth what the vendor is looking. The appraiser does not simply appear on the condominium you're buying, they cost the over all vicinity and the importance of the houses close your house. It is correct that a dangerous house, or a house left neglected could make the importance of the houses round it pass down. An appraiser might trap problems like that. If the appraiser located the importance of the house to be lower than the asking cost, you would use that to check out to buy the house on the lessen cost, and probably get the condominium you wish for lower than what you believe you're going to need to pay correct now. There is constantly a moderate threat of being denied due to the fact that of a quandary with the house, however mainly, the vendor has commonly performed the correct steps to be certain their house can promote, mainly if they're making use of a realtor. After all, they wish out of the house due to the fact that it is not correct for them anymore, in order that they wish it to cross those inspections.

    • Login to reply the answers
  • 8 years ago

    The short version.....9 times out of 10 realtors wouldn't even consider your offer without being pre-approved (and sometimes a back up pre-approval by them) with that said depending on how "clean" your file is and all the necessary documents are in place it should go to processing (a processor) who will fine tune everything and thennnnn it goes to the underwriter. Turn times for each lender varies but again the cleaner the file the faster you will receive results I would estimate a week tops anything more would be doing you a disservice. onwards and upwards good luck!!

    Source(s): Mortgage Professional, California Licensed
    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 8 years ago

    It has to go to the underwriters.

    This can take 3 weeks.

    You didn't get pre-approved for a mortgage before you went house hunting?

    • Login to reply the answers
Still have questions? Get your answers by asking now.