Get Prequalified: The Homebuyer’s Edge

houseIn some areas, homes jump on and off the market in a matter of days. When you’re shopping for a home, you’ll want to have an extra edge over other buyers. That competitive edge is a prequalification letter from your lender. Having a prequalification letter will show buyers that you are serious. It will give your agent an advantage when negotiating on your behalf, and it will help you get the ball rolling quickly when you’ve found your dream home. Here are a few recent articles that highlight the importance of getting prequalified:

 

CNN MoneyHomebuyers: To get the house, get there first

Shopping in a popular spot? You’ll have to go beyond the usual sellers’ market tactics, such as getting prequalified for a mortgage. These strategies will help you find homes first, stopping a bidding war before it starts.

Keeping Current MattersHome Loans: Shopping for a Low Interest Rate

Move Quickly.  As they say, time is money… look into getting prequalified for a loan. This process is rather simple and can put you in a much better place to buy, as well as give you a great idea as to what you can expect to borrow.

Market Wired – Why It Pays to Get Prequalified for a Mortgage

“Many borrowers essentially sail through the application process. Because they do their homework and plan ahead, they get prequalified,” said Ray Brousseau, Executive Vice President with Carrington Mortgage Services, a lender active in more than 40 states. “Not only is the application process easier, but a qualified borrower is more attractive to home sellers, meaning that borrowers can get a marketplace advantage by going through the prequalification process.”

If you are currently shopping for a home, my team and I would love to help you with the prequalification process. Give us a call today!

Conditional Approval vs. Final Underwriting Approval

JC_CONDITIONAL APPROVAL VS. FINAL UNDERWRITING APPROVALA conditional approval is issued after your loan has been reviewed by an underwriter and it has been determined that it meets the loan guidelines. The approval is considered “conditional” if the underwriter requests additional information prior to final approval of the loan. The requested information is usually supporting documentation for details provided on the loan application.

Upon underwriting review of the requested conditions, final loan approval is then issued when the underwriter is able to determine all loan requirements have been met. Once we have final approval we are able to send your loan documents to escrow for closing.

 

Documenting Your Assets – The Paper Trail

JC_DOCUMENTING YOUR ASSETS THE PAPER TRAILAssets must be verified to ensure a borrower has sufficient funds to complete the mortgage transaction and, if required, adequate reserves after closing. Money that has been deposited into your account at least two months prior to closing is considered seasoned funds. These assets must be tracked and documented 60 days prior to the date of closing. Assets may be verified with copies of bank statements or investment portfolio statements that cover activity in the borrower’s accounts. If the account reflects large deposits/transfers, underwriting will require evidence that these funds are from an allowable source per underwriting guidelines

Here are some examples of inconsistent deposits/transfers that will require documentation:

  • Deposits greater than $250.00
  • Single or cumulative deposits/transfers that are greater than $250.00
  • Out of cycle payroll deposits/transfers, e.g. borrower is paid on the 1st and 15th of the month, but deposits made by the employer are on the 10th.
  • Statement has a significantly greater balance than previous balances.