1. What is the difference between pre-qualification and credit pre-approval?
2. Once my loan is approved, is it guaranteed to close?
3. Do I have to find a house before I get pre-approved?
4. The difference between a mortgage lender and a mortgage broker?
5. Are you a mortgage lender or a mortgage broker?
6. Where do you get your loan programs and rates?
7. Who is involved in the process?
8. What does the loan processor do?
9. Is a property appraisal the same as a whole house inspection?
10. Who will order the inspections?
11. Who do I use for obtaining homeowner's insurance?
12. Do I have to have private mortgage insurance?
13. Do I have to have an escrow account?
14. What happens with the earnest money I gave to my Realtor?
15. When will I know the exact funds I will need for closing?
16. Will you be at the closing?
17. Can you help if I buy a for-sale-by-owner?
18. Will my loan have a prepayment penalty?
19. Can I refinance my loan with you?
What is the difference between a pre-qualification and a credit pre-approval?
Pre-qualification is when you talk with a lender and based on your answers to basic questions, the lender will tell you approximately how much you can borrow. There is no commitment to approve you for a mortgage loan. With a pre-approval, you supply paperwork to support the information you told the lender when you were pre-qualified. The lender verifies your employment, income, assets, debts and credit history. The verifications are forwarded to an underwriter who will make the final decision on loan approval.
Once my loan is approved, is it guaranteed to close?
No. If there are any adverse changes in employment, assets or credit information the loan must be re-underwritten and may be declined.
Do I have to find a house before I get pre-approved?
No. You apply for your pre-approval before you shop. Many sellers fear they will pull their house off the market for weeks, then the buyer's loan is denied and they're back to square one. Anything you do to reduce this fear stands out as a plus in the seller's eyes. A pre-approval letter helps achieve this goal. If there are five offers on a house, your pre-approval can make your offer stand out.
What is the difference between a mortgage lender and a mortgage broker?
Mortgage lenders can be banks or mortgage companies that are licensed lenders. Mortgage lenders take applications, process the loan, underwrite the loan, prepare their own documents, fund the loan with their own money and have the ability to collect mortgage payments. Mortgage brokers on the other hand, act as "middle men", working with the borrower to obtain a loan from a mortgage lender. They take the loan application and send them to affiliated mortgage lenders for final approval, funding and servicing.
Are you a mortgage lender or a mortgage broker?
I work for a mortgage lender.
Where do you get your loan programs and rates?
From banks, other mortgage lenders and most of the same places on-line lenders get theirs.
Who is involved in the process?
There can be over 15 individuals or companies involved. Including but not limited to: sellers, Realtors, loan officer, loan processor, appraiser, surveyor, title company, real estate attorney, flood certification company, credit reporting company, whole house inspector, termite inspector, underwriter, private mortgage insurance company, insurance agent, court house, couriers, house warranty company and possibly others.
What does the loan processor do?
The processor checks and double checks the numbers and obtains all documentation required for the file. They make sure the documents are in compliance with lender, investor and government guidelines. Processors are also responsible for placing orders with other outside vendors for the property appraisal, title work, survey, flood certification, credit updates, verifications of employment and more!
Is a property appraisal the same as a whole house inspection?
No. An appraiser does not guarantee that the house is free of defects. You should inspect the property yourself very carefully or hire an independent professional inspection service to inspect the property for you. There is no loan requirement that you hire an inspector but one is recommended. An appraisal is required and the loan processor will order it.
Who will order the inspections?
You or your Realtor will order the whole house inspection, termite inspection and any other property inspections specified in your purchase offer.
Who do I use for obtaining homeowner's insurance?
You can use an insurance agent of your choosing. Call us with the name and telephone number of the agent so that we can coordinate closing information.
Do I have to have private mortgage insurance?
Private mortgage insurance is usually required if you have less than a 20% down payment. However, there are some loans that don't require it and there are options to avoid it. Please call me for details.
Do I have to have an escrow account?
If you have less than a 20% down payment, an escrow account for property taxes and insurance is required.
What happens with the earnest money I gave to my Realtor?
It will be credited at closing towards your down payment and/or closing costs.
When will I know the exact funds I will need for closing?
Usually within 48 hours of closing. Call me if you need an estimate sooner.
Will you be at the closing?
I attend the majority of my closings.
Can you help if I buy a for-sale-by-owner?
Yes, I help the buyer and the seller.
Will my loan have a prepayment penalty?
Almost 100% of the loans I close do not have a prepayment penalty. You will be advised early in the process if your loan program has a penalty.
Can I refinance my loan with you?
Yes. I also accept applications for equity loans and lines of credit.
