Mortgage rates rose slightly last week though there was little new economic data. The major event of last week was Ben Bernanke’s semi-annual monetary policy which generated headlines as he described the “unusually uncertain” outlook. Mor. . .
The information below applies to Purchase Transactions Only.
While shopping for a home loan, brokers and lenders will offer to pre-qualify or pre-
approve you for a mortgage. Home loan pre-qualification and pre-approval are different
and distinct processes, so it is important for you to understand the difference.
Pre-Qualified
A loan officer or loan processor working for a mortgage lender or broker can typically
pre-qualify you for a home loan within an hour. Getting pre-qualified for a home loan
is a good first step that will let you know if you should proceed to the pre-approval
process. To get pre-qualified you will need to complete a mortgage application and
allow the broker or lender to pull your credit. They will review the mortgage
application and your credit and let your know if you are pre-qualified.
Pre-Approved
Only a mortgage underwriter can pre-approve you for a home loan, loan officers and
processors can not. Typically mortgage brokers do not have underwriters on staff, so
they typically can not pre-approve your home loan. A valid pre-approval is the best
tool you can have when shopping for a new home. The key is to ensure that it is valid.
A valid pre-approval has been underwritten by an authorized underwriter (an underwriter
is the final person that says your loan is approved). If an underwriter pre-approves
your home loan application upfront, all you have to do is find the home you want, have
it appraised, and then you should be able to close in just a few days. Some mortgage
brokers and lenders will issue pre-approvals that have not been reviewed by an
authorized underwriter, be sure to ask.
To get pre-approved for a home loan you will need to provide the underwriter with your
income and asset documentation (W2’s, Bank Statements, etc). The underwriter will
review your credit, mortgage application, documentation, and then approve you for a set
loan amount and property value. Once you have been pre-approved for a home loan you are
ready to start shopping. The process typically takes a couple of days.
Knowing exactly what type of home loan you can obtain will allow you to shop and
negotiate with confidence. For example, you could inform a seller that you are pre-
approved for the mortgage and you are prepared to close next week. If the seller needs
to close quickly, it will not matter if there is another buyer that cannot close for
weeks or months. Plus, sellers do not like to take their properties off of the market
for long periods of time. The ability to close quickly is one way to get a great
deal.
To get pre-approved for a home mortgage you will need to provide the underwriter with
your income and asset documentation (W2’s, Bank Statements, etc). The underwriter will
review your credit and then approve you for a set loan amount and property value. Once
you have a pre-approved real estate mortgage you are ready to start shopping.
Read what customers say about our level of service.
Posted: 07/30/10 4:30 PM
The refincing process is nearly completed. My experience with Amerisave so far has been very good. I want to thank Brant Gillmore and Rachel Handschuh for their excellent services: they have been very attentive to my needs and inquiries, and very professional.
Posted: 07/30/10 2:57 PM
I , thus far, have found it user friendly. I have been asked for documents that I had previously sent in but that does not appear to be hugely problematic.
** Thus far, I would recommend AMerisave to colleagues. ( ..and have !)
Posted: 07/30/10 1:10 PM
I like that it's fast and no-nonsense. I like that my mortgage processor is quic. . .
