Mortgage Process

Credit Tips for Home Buyers, and Home Owners, to Consider

good-credit-vs-bad-creditYour Credit Score is the most obvious factor in your ability to getting your Mortgage Application approved. The higher your score, typically the less risk you pose to lenders and the lower your mortgage interest rate. So how is your credit score determined? And how can you improve it?
Here are some Credit Tips for Home Buyers to Consider:

• Consumers can obtain free credit score models on-line all with different ranges.
These scores can differ from the FICO score models used by mortgage lenders

      ♦ The Only Website authorized by law to provide the FREE Annual Credit
Report you are entitled to under the Fair Credit Reporting Act
annualcreditreport. com. 

• Mortgage accounts add more points to the FICO score since they are the most
difficult type of credit to qualify for.

• The higher the credit score, the more it drops after a delinquency.
• Most negative info remains on your credit report for 7 years.
• Revolving credit balances can have an extreme impact on credit scores.
     ♦ Revolving credit is classified as credit cards, overdraft protection on checking
accounts, and other lines of credit

• Most experts recommend keeping your overall credit card utilization below 30%.
Lower credit utilization rates suggest to creditors that you can use credit r
responsibly without relying too heavily on it, so a low credit utilization rate may
be correlated with higher credit scores.
You can calculate your credit utilization rate by dividing your total credit card
balances by your total credit card limits. The resulting percentage is a
component used by most of the credit scoring models because it’s often
correlated with lending risk.

• Closing revolving credit cards can reduce scores dramatically since it can alter the balance-to-limit ratio.
      ♦ All of the accounts on your credit reports count, even if they are closed.
• The older the average age of credit, the better it is for FICO scores.
• Seasoned credit is credit accounts that are over 2 years old.
• Consumers with the strongest credit scores tend to have a mix of different
types of accounts.
The key is to manage all these accounts responsibly. Credit scoring models are
looking to see if you can handle all different types of financing as they assess
your creditworthiness.

• When consumers find errors on their credit report, they should speak with a credit expert before calling the creditor directly.
Consumers often rush to call creditors about errors on their credit  report
thinking it will help them. Often times, they may make a statement that
confirms their guilt or makes it more difficult to reach a successful resolution.

Resources: Northshore Advisory.



Mortgage Process

Do You Need a Letter of Explanation with Your Mortgage Application?

pre-approval 2From time-to-time during the mortgage application process a question will arise that will need further explanation. The underwriter’s concern about certain facts uncovered during her verification of the statements made on an application can usually be addressed in a Letter of Explanation signed by the borrower(s). A professional Loan Officer will usually pick them up during his interview. Here a few of the typical concerns that need to be addressed.

Credit Inquiries:  If the borrower has a credit inquiry on their credit report dated within 120 days of their application, a Letter of Credit Explanation will be requested stating the purpose of the inquiry and whether or not any new debt was incurred as a result of the inquiry.
Joint Account Holder on Bank Account, But Not On Loan:  If a spouse or an6y other person is a joint holder on a bank account where the funds will be used for the down payment or closing costs of a mortgage, a Full Access Letter will be required from that person confirming that they give the borrower 100% access to the funds to use in the transaction.
Address Discrepancy:  If an address shows up on the credit report, pay stub, or bank statement that is not the same as the borrower’s current address on the application, or listed as any previous address on the application, a Letter of Explanation must be submitted explaining the discrepancy with dates the borrower occupied said address.
Derogatory Credit:  If any derogatory credit trade lines appear on the credit report, a Letter of Explanation must be submitted stating what they are for and what event triggered the derogatory credit.  If it is a significant event, stating how the borrower intends to prevent reoccurrence in the future will be very helpful.

Helpful Tips:
o   Documenting a file with the appropriate Letter of Explanation prior to submission of the application will save time in processing and underwriting.
o   All Letters of Explanation must be signed and dated by the borrower
o   Additional documentation that might better explain a questionable situation should be submitted with the Letter of Explanation
o   Any new debt that was incurred as a result of the credit inquiry and is not shown on the credit report must be supported by a copy of the current monthly billing statement. 

Call Me to discuss to discuss the right mortgage option for your family. Take advantage of my FREE Jumpstart Mortgage Pre-Approval service and be ready to make an offer on the home of your dreams.

“When You Work With a Professional, You Get Professional Results”

Mortgage Process

First Home Buyer Tips They Don’t Teach You in School

You don’t learn about how to buy a house in school. They don’t teach you  what you need to apply for a mortgage, what kind of loan you’ll need, or what PMI is (it’s called private mortgage insurance)

And let’s not mention that you need to shop around for the best deal — or you can hire somebody to do that for you.

So here are some First Home Buyer Tips to help guide you through the home buying experience. 

♦  Have a conversation with your significant other about what you’re millenial 2looking for, what you need and what you can do without. Standing in the living room during an open house with your real estate agent isn’t the time to argue about wanting three bedrooms instead of four.
♦  Know your financial records. What’s your credit score? How much Low Monthly Paymentsoutstanding debt do you have? What monthly payment can you afford?
How much money did you make last year? You’re going to need to know all of this information. Have all of your paperwork ready to go.
♦  Know your limit — if you can’t afford a $450,000 house, don’t go look at $450,000 houses.
♦  Shop around. There are dozens of real estate agents, attorneys, and mortgage officers so don’t settle. These people are going to work for you, their job is to make you happy. You’re going to be on the phone and meeting with them frequently, so make sure you like who you’re working with.
♦  Do your research. When you do decide on a real estate agent, he or she isGet Pre-Approved going to want to know what your price range is, what neighborhoods you’re interested in, if you want to be close to schools, expressways, public transportation, etc. Know what you want and Get Pre-Approved! 

♦ This is the big one you’ll be glad someone told you about.
Don’t get too attached to a house, because if it the deal doesn’t work out, for whatever reason, you’re going to be devastated.
♦  Be willing to negotiate, it’s a big part of the game.
♦  This goes hand-in-hand with negotiating: put your foot down and don’t let anyone take advantage of you. If the seller is asking for way more than you’re told the house is worth, or if they’re not willing to fix something that is broken or at least negotiate the cost, you have to be ready to walk open houseaway. There will be more houses, trust me.
♦  Don’t just purchase a house by its listing. Go look at EVERYTHING. A lot of houses look different in person than they do on-line, good and bad.

First Home BuyerI have the belief that anyone that deserves to own a home should be able to do so. The American Dream is still attainable for those buyers who do their homework, establish a game plan and work hard to achieve that goal. I’m here to help.


Mortgage Process

Credit Dos and Don’ts During the Mortgage Process

A good credit score is critical when it comes to obtaining the best interest rates and terms on a mortgage. Here are some Credit Dos and Don’ts when looking for a mortgage.

  Do Stay Current on All Existing Accounts. One 30 day notice can hurt you.

­   Do Continue to Use Your Existing Credit As Normal. If it appears your are changing your pattern, it will raise a red flag and your score could go down.

 Don’t Apply for New Credit. Every time you have your credit report pulled by a potential creditor or lender, you can lose ponts on your credit score. This includes co-signing for a loan.

 Don’t Pay-Off Old Collection Accounts or Charge-Offs. Talk to your loan officer first. Yes, you are liable for these debts, but now might not be the time. If you must pay-off these old debts, do it through the closing process of your mortgage. Be sure to request a “letter of deletion” from the creditor.

 Don’t Close Credit Card Accounts. When you close an inactive credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.

 Don’t Max Out or Over Charge Credit Card Accounts. Don’t make any large purchases. Keep your credit card balances at 30% of your credit limit before and during the application process. If you do pay down balances, do it equally across the board.

 Don’t Consolidate Your Debt. When you combine all your balances into one or two credit cards, it will appear that you have “maxed out” on that card and you will be penalized.

­   Do Call Your Loan Officer. Talk to you Loan Officer before taking any action that may possibly affect your credit score.

Mortgage Process

What is A Mortgage Rate Lock?

At some point during the mortgage application process, the borrower must exercise their agreement with the lender to lock in the rate for their final mortgage. 

rate lockWhat is a Mortgage Rate Lock?
A Mortgage Rate Lock protects the borrower from the risk that interest rates will increase during the rate lock period. It guarantees that the lender will offer the borrower a specific combination of interest rate, points or interest rate credit at the closing of their loan.
If market rates rise after the rate is locked, the borrower will still get the lower rate, to the lender’s detriment. But there’s a downside: If rates fall after the rate is locked, the borrower might not be able to take advantage of that opportunity. 

When Can a Mortgage Rate be Locked?
Buyers typically must wait until a seller has accepted their purchase offer for a specific property before they can lock in an interest rate for their mortgage. In addition, the lender must have certain information about the borrower and the details about the transaction before a rate can be locked. This includes receipt of all signed legal disclosures, the borrower’s credit score, anticipated loan-to-value ratio, property type and the borrower’s signed intent to proceed with the transaction. Until all pieces of the puzzle are in place, the lender can not accurately commit to any final interest rate, cost and terms.

How Long Can a Mortgage Rate be Floated?
When a mortgage rate is locked depends on the borrower’s tolerance for risk. The purchase and sales contract dictates when the loan must close. The borrower may opt to let the final mortgage rate ride or “float” with the market until they feel they can get the best deal. Of course they run the risk that the market will turn in their time period and rates will rise from current conditions.
A good mortgage loan officer may have, in good faith, projected a final mortgage rate for processing purposes, but the mortgage application cannot be approved until the final rate has been locked in.
In today’s mortgage processing environment, a mortgage rate could be floated until about 14 days prior to the prescribed closing date. This should give the lender to deliver the final disclosures, the underwriter time for a final review of the application and to issue a “clear to close,” and time for the closing deportment time to deliver closing package to the closing agent.

Should You Choose a Longer Rate Lock Period?
Borrowers are well advised to choose a 45 to 60 day rate lock period to ensure they can get the agreed upon rate even if there is a delay in processing their mortgage application. If a loan fails to close within the rate lock period, the borrower will charged the higher of the original lock and the current interest rate. If rates are higher, the borrower may be offered the opportunity to extend the original rate at a cost of 0.25 points for each 7 day period. (A point equals 1.00% of the base loan amount)

How Much Does a Rate Lock cost?
lockMost lenders will not charge for a Mortgage Rate Lock.  . But a rate lock isn’t free. Rather, a longer rate lock typically involves a higher interest rate, which is more expensive for the borrower. The interest rate or “pricing” difference between a 15-day rate lock and 60-day rate lock might be as little as one-eighth or could be as much as half of a percentage point. The longer period protects the lender from potential market deterioration. The shorter the rate lock period, the more risk the borrower is taking on, but they should be getting a better price.”

No Mortgage Loan officer is an interest guru. But he does understand the lender’s commitment to you and will do his best to honor the rate lock obligation. However, the complexity of your application and issues like: failure to provide additional documentation in a timely manner, appraisal concerns, possible title problems all add time to the process.

There is rarely a reason not to lock a loan as soon as you can. Interest rates change daily, sometimes hourly. To protect yourself against the volatility of the marketplace, it’s a good idea to lock your rate once you are satisfied with the rate. The reason some buyers dislike loan locks is because they want to grind every dime out of a transaction that is humanely possible. Just remember that if the rate was acceptable when it was locked three weeks ago, a drop of an 1/8 of a point or so isn’t the end of the world. You don’t need to be that kind of borrower to get a good deal.

Read more:

Mortgage Process

The Mortgage Underwriter and Your Mortgage Application

The Mortgage Underwriter is one of the most important people in the Mortgage Application process. Without the approval of an underwriter, no lender will fund or close on a loan. It is the job of the underwriter to ensure a borrower can repay the loan they are applying for and to determine that the sales price is supported by the appraisal value before granting lending approval.

app approvedApproval of a Mortgage Application is based on several things: income, credit history, debt ratios, and savings.
♦  A borrower must be able to prove a stable income and job history needed to repay the loan.
♦  They also must have a credit history that reflects a stable record of repaying obligations and a balanced debt to income ratio. Additionally, a borrower’s monthly debt must fall within acceptable limits determined by the loan product’s guidelines.
♦  Lastly the borrower must show that they have enough money saved for their down payment and closing costs. It is also smart to have a few months of mortgage payments saved away in case of an emergency.

It is the Mortgage Underwriter’s job to make sure all of these factors meet particular loan guidelines. The underwriter will evaluate all of this information and sometimes ask for more information or explanations from a borrower to clarify and support their decision on the  Mortgage Application.

Mortgage Underwriters also review the Appraisal to make sure it is accurate and thorough, and that the home is truly worth at least the purchase price. A property’s appraised value is also reviewed by the underwriter to ensure the value supports the amount of the loan you are requesting. A good underwriter will also take into consideration the condition of the property, the location of the property and how it may be affected by natural disasters, such as floods.

An Mortgage Underwriter does his or her best to evaluate the potential risk involved when lending to a borrower. In January 2014, the Consumer Financial Protection Bureau enacted stricter requirements on some mortgages, which included tougher background checks into your bank account, spending and employment history.  If an underwriter does not follow all guidelines and makes a poor lending decision and the loan defaults, meaning a borrower stops making payments on their mortgage, it could result in a hefty cost to the lender.

The Mortgage Underwriter has final approval and final responsibility for the Mortgage Loan.  They must make important decisions based on the facts presented in the file, their own judgments and similar application experiences. The Mortgage Underwriter has to take a calculated risk and do his/her best to determine if a file adheres to not just the letter but the intent of the loan program guidelines. It is not an easy job.


CT Mortgage Broker With A Unique Advantage

I’m a Mortgage Broker with a Unique Advantage in the world of Mortgage Finance. The relationships I have formed with trusted lenders over the years means that I can get loans done quicker and closed on time when others may not be able to accomplish anything at all.
The majority of the dozen or so lenders I work with have Account Reps. When these Reps are really good at what they do, and you do a lot of volume with them, they will do everything possible to keep me and my clients happy. The #1 reason … the happier I am with their service, the more loans I will send their way… and the more money they will make!

Every Mortgage Account Rep is always vying for more business. The reason is obvious… they cooperationwant to make more money. Over time, true relationships are formed. I have done business with many of these reps for years and strong bonds have been formed. I know them professionally and they know how much I love my dog.

I wouldn’t try to count the cups of coffee I’ve shared with these Reps. Their message is always the same …When I have a problem with one of my loans, call them ASAP so they can expedite the problem. They always know…if they fix issues, I can deliver on my promise to my clients and that means more future business they’ve earned and deserve.

What Does This Mean To You?
 The relationships that I’ve formed over my 40 years of Mortgage Approvedfinancial service experience means that loans can get done quicker and, when glitches arise, loans can still get closed when the big box banks turn their customers out to the wolves.   

Mortgage Process

What To Do and What Not To Do After Mortgage Pre-Approval

Congratulations & Thank You! You’ve listened to my advice! You’ve decided to “Get Off the Fence” and buy your new Get Pre-Approvedhome. You’ve also done the smart thing and got Pre-Approval for a mortgage. Now you can shop for that home confident in knowing how much of a mortgage you can afford and how big a house you can buy.Shopping for a New Home
Now the “Fun” begins! It will be an anxious time deciding on the right house. But don’t forget, the mortgage application process is not over. Just because you have Pre-Approval, doesn’t mean you can sit back, wait for the appraisal, and expect the transaction to close easily. You still have to take action!

Here’s a list of What To Do and What Not To Do After Pre-Approval to be concerned about as you move through the next stages of your mortgage process:
Don’t Apply for New Credit. Don’t Make any Major Purchases do not enter
Lenders are required to pull a new credit report just before final approval of the loan. Don’t be tempted to take advantage of the great sale for furniture or lawn mowers you’ll need in the new house. Any new credit inquiry will have to be examined; any new debt could affect your debt: income ratio (DTI); and worse, adversely change your credit score that could affect the final rate and terms of your loan.
Even if you pay cash, you may have less money for the down payment and closing costs and/or less money cash reserves (monies left over in your bank accounts to cover future ability to make future mortgage payments)
Don’t Change Jobs. Tell Your Loan Officer About Any Pending Change in Employment Status.
new job
If a great opportunity comes along for career advancement after you’ve been Pre-approved, try to postpone the first day on the job until after your mortgage closes. Lenders are concerned about job stability and are well aware that most new jobs have a 30-90 day probationary period. Lenders might require you to provide a month’s worth of pay stubs to prove your new salary. They also might be concerned if the new job is not in the same line of work..
Conversely, you might be notified of a pending lay-off or worse. Even though you have provided the lender with current pay stubs, lenders will call your employer to verify current employment and the prospect of continued employment.
Be sure to discuss these situations with your loan officer as either one will require more paperwork and could delay your closing.
Do Not Pay-Off All Your Debt. Do Not Pay-Off Old Collection Accounts.
Consult with your loan officer before you do anything that will impact your credit score. Paying off credit card debt money managementwill reduce your cash reserves and could hurt you if the account is closed.
Paying off old collection debt will often signal to the credit reporting agencies that there is new activity on an a bad account and could actually lower your credit score.
Do Not Co-Sign for Any Loans
After 40 years of lending experience; I know that borrowers assume co-signing for your co-signchild’s car loan won’t affect their credit. “It’s not my loan, my kid pays for it.” The loan is considered a debt for both signers and will show up on the mortgage applicant’s credit report and will be included in their DTI. If the child has been late on any payments, the delinquent history will negatively impact the applicant’s credit score.
Do Not Ignore the Lender’s Request for Additional Information.
If your lender needs further clarification of the statements you made in your application, follow directions and do it ASAP! You must be prepared to provide all documents as soon as they are requested, because any delay on your part could delay closing and cost you money.
Do Not Move Any Money Around. Keep a Paper Trail of All Deposits.
Family Finances
To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. It is okay to start packing up the dishes, but not your bank records.
Do Not start consolidating your bank accounts, do not make any large deposits to your accounts; Do Not make any large withdrawals either. If you do, document everything!. Keep copies of the check, the deposit ticket and the bank statements that were involved in the transaction.
Most important, Do Not Accept Any Gift Funds until your loan officer tells you how. There are very specific rules and paperwork that must be followed to document the use of gift funds for your down payment and closing costs
Do Not Continue Shopping For a Better Deal With Other Lenders.
This is not meant to be self-serving. Do your shopping for mortgage programs, rates, payments referraland closing costs first. Once you decide on a mortgage professional you trust, stick with them (unless you become completely dissatisfied with their service for some reason).
This is very important because all credit pulls when shopping for a mortgage will not hurt your credit as long as they are done within a 14 day period. If you continue to allow other mortgage companies to look at your credit and/or apply with other companies this can negatively affect your credit scores. I recall several situations where borrowers continued to shop for a better deal and it hurt their credit enough to disqualify them for the program they were Pre-Approved for, forced them to accept a higher interest rate and scramble to find additional monies for closing costs.
Do Stay Current on All Existing Accounts
Make sure you pay all your current obligations and you don’t have any overdrafts on any account. Overdrafts are a sign of “fiscal irresponsibility” and can kill an application quicker than many other factors.
Do Not stop paying your current mortgage, Do Not allow any utility or telephone bill to become collection accounts.
Remember, a Pre-approval is just a snapshot in time. Finding a new home may take awhile. So as time goes by, the lender will require more recent bank statements; and they will pull a new credit report just prior to closing. You want to stay as close to the original snapshot as possible.
Do Line Up an Attorney, and Insurance Agent and a Home Inspector
These professionals play an important role in your home buying experience. The attorney to review your Purchase Contract, defend your interests in the buying process, and represent your at the closing. You’ll need an insurance agent to provide you with home owners insurance; and a home inspector to make sure the property is in good physical shape.
Do Tell your Mortgage Broker and Your Attorney About Any Changes in the Purchase Contract and/or Statements Made in The Application
Situations may arise where the buyer and seller change the terms and conditions of the original agreement. Seller concessions, higher/lower sales price, closing date are some that come to mind. Any change to the LTV or the DTI will require re-submission of the loan documents and could delay the closing at additional expense.Similarly, let your loan officer and attorney know about any change in marital status or name change. This will help you avoid problems with the final closing documents and/or title problems.
Do Understand That Mortgage Pre-Approval is Not a Commitment to Lend.
A Mortgage Pre-Approval Letter can only be issued by an underwriter. The credit report that was pulled and all the documents you supplied form the basis of the snapshot of your financial situation at one moment in the process. It is typically issued with the caveat that it is subject to “receipt of a satisfactory appraisal of the property” and “final review of the complete application file” by the underwriter.
As the mortgage process evolves, borrowers are encouraged to stay as close to the original snapshot as possible.
Bottom Line.First Home Buyer
You chose your mortgage professional because you trust him. If you have questions about what to do or not to do throughout the mortgage process, do not hesitate to give him a call. Be honest and upfront with your concerns; ask questions if you don’t understand something; and keep in touch after application all the way through closing to guarantee a smooth hassle free transaction.

Mortgage Process

What’s The Difference Between Mortgage Pre-Qualification and Mortgage Pre-Approval.

Finding your First Home can be a stressful experience. Home for SaleFinding the right mortgage loan for your family just adds to the anxiety. That is why it is so important to understand the Mortgage Process and The Difference between Mortgage Pre-Qualification and Mortgage Pre-Approval.

You’ll hear about two ways of estimating your borrowConfuseding power: Mortgage Pre-Qualification and Mortgage Pre-Approval. These terms appear to be similar, but are quite different. Not only do they cause confusion for home buyers, there seems to be many interpretations from those in the real estate and mortgage industry as well.

The real the difference between the two terms is that a Mortgage Pre-Qualification is based on verbal information provided by the buyer. With a Mortgage Pre-Approval, the buyer supplies written documentation of all information they claim to be true. Neither is a considered to be a mortgage commitment, nor a written mortgage guarantee. However, obtaining a Mortgage Pre-Approval Letter is more preferred than obtaining a Mortgage Pre-Qualification Letter. Remember…they are not the same thing.

Getting Pre-Qualified for A Mortgage
A Mortgage Pre-Qualification is just an estimate of how big of a house you can afford and how much money a lender might be willing to loan you. The best time to get Pre-Qualified for A Mortgage is right at the beginning of your home buying process, before you even start looking at houses.

You simply talk to a Mortgage Professional, probably on the phone, and verbally provide information on your income, your assets, debt, and your potential down payment Handshake amount. The loan officer will also ask for your social security number and permission to order a credit report. After the credit check is received, he will talk to you about your mortgage options and provide you with a ballpark figure, in writing, of how much he thinks you could afford for a monthly mortgage payment and how much house you can afford.

The Mortgage Pre-Qualification Letter might say something like: Congratulations, After reviewing your credit report,  the income information and the down payment availability you have shared with us at this time; you are Pre-Qualified for a 30 year fixed rate mortgage loan in the amount of $__________ sufficient to purchase a single family residential property selling for up to $_______.

The Mortgage Pre-Qualification Letter will always include disclaimer information such as: This Mortgage Pre-Qualification is not a commitment to lend. It is contingent upon: Receipt of an acceptable appraisal of the property; Seller concessions of up to 6% of the sales price to be applied to your closing costs (if you need them); and something like Final review of your complete application package by our underwriter. In other words, we will give you a mortgage when we see that the information you told us about is correct and meets certain qualifying standards.

There should be no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range will probably be. 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.

Getting Pre-approved for a Mortgage
Mortgage Pre-Approval is the next big step. This process is Get Pre-Approvedmuch more involved. Basically, you are formally applying for the mortgage loan that will ultimately finance the purchase of your new home.
The mortgage application process involves providing documented evidence that will satisfy the underwriting criteria and guidelines for the type of mortgage loan you’ve discussed with your mortgage professional. Conventional, FHA, or USDA mortgages have different underwriting guidelines and specific qualifying criteria for verification of income, income qualifying ratios, verification of down payment, cash reserves after closing, credit scores and work history, among others.

The process is not quick and not necessarily easy. But, most REALTORS® will tell you that getting Mortgage Pre-Approval is the key to getting the home you want. Agents and Sellers will know you are serious about buying when it’s time to make an offer. And in today’s hot real estate market, a buyer may need to act fast. If the competing buyer has a Mortgage Pre-Approval in hand and you don’t, they win.
   •    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 have Mortgage Pre-Approval and you are prepared to close as soon as the inspectioPurchase Contractns are complete and the appraisal has been approved…less than 30 days.
Keep in mind; once the seller signs a Purchase contract, they have to take their home off the market. The ability to close quickly, because you have Mortgage Pre-Approval is one way to get a great deal.
    •    And just as important, you, the buyer, will be more relaxed in spending money to hire an Attorney for contract review, providing the earnest money deposit, hiring a home inspector to perform the home inspection, termite Home Inspectioninspection, radon inspection plus any other required inspections and paying for the mortgage application and appraisal fee.
Why? You are concentrating on the home you have purchased, and not worrying about whether they are going to get a mortgage to buy this dream home. It’s already been done!

Only a Mortgage Underwriter Can Issue a Mortgage Pre-Approval
Loan Officers can not issue a valid Mortgage Pre-Approval Letter. A valid Mortgage Approval has been underwritten by an authorized underwriter (an underwriter is the final person that says your loan is approved). If an Loan Applicationunderwriter Pre-Approves your application upfront, issues you a valid Mortgage Pre-Approval Letter, all you have to do is find the home you want, have it inspected and appraised, and  you should be able to close in less than a month.
That’s a big bargaining chip in today’s market.

Click Here for What Paperwork You Need for Mortgage Pre-Approval:Mortgage Checklist
By law, the only fee that can be collected at this time is the cost of a credit report, so be sure to ask if the Mortgage Pre-Approval service is free. Once you have Mortgage Pre-approval, it’s time to go shopping.

Once You Have Mortgage Pre-Approval:
Do Not: become overdrawn in your checking account; make any large deposits to your deposit accounts without discussing it with your mortgage professional; apply for any new credit, make any large purchases with your credit cards, use your credit cards to pay for the home inspections and/or appraisal; fail to notify your Loan Officer of any change in your employment status.
   •   The lender will pull another credit report just prior to closing, Any inquiry or any new debt could drop your credit score and “kill’ your chances for a mortgage at the terms and conditions specified in the Mortgage Pre-Approval Letter.   
   •   Overdrafts are a sign of “financial irresponsibility and large deposits will have to be explained and could delay your closing.
   •   Similarly, the lender will call your employer to verify that you are still employed. Changing jobs or a notice of pending lay-off could “kill” your  application too!

Don't Sit on The FenceThe Spring inventory of good homes on the market is shrinking and prices are going up. Interest rates are positioned to go up too!
Call Me @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE Mortgage Pre-Approval service.  I’m here to help.