Loan Application
Unless you are paying all cash and the sale does not involve a mortgage, you will be required to make official loan application, usually within five working days of the contract acceptance. Some lenders will allow you to make loan application before you find your house, and will sometimes approve your loan application in advance. Pre-approved loans can be a great advantage when negotiating your offer, as the seller will feel very comfortable accepting your offer if he knows that your loan is already approved.
The loan processor will usually require a great deal of personal, financial and employment data. You should be prepared to provide two recent pay stubs, past two years tax returns, bank account numbers, approximate account balances, credit card numbers, creditors' addresses, and personal references.
If you wish I will assist you in finding the best rates and terms. You are not obligated to use any suggested mortgage company. However, I will, if you wish, research the market and make recommendations based on the best terms and service. The choice, however, remains yours.
In addition to providing your lender with all the information required, you should be prepared to pay for the appraisal fee and credit report when you make loan application. As costs change over time, ask for current fees. Currently, the amount is approximately $350.
For purchasers who are self employed, the lender will require that you furnish a great deal of documentation to support your income history. It is recommended that you contact your lender immediately to obtain a list of current requirements. It is certainly wise to do this before you begin your search for a new home.
Depending on the activity in the real estate market, loan approval usually takes between 7 and 45 days. Your processor will provide you with an estimate of costs and a loan commitment for up to 60 days. This commitment will lock you into current loan terms.
In real estate matters, TIME IS TRULY OF THE ESSENCE! In order to ensure a smooth sale, loan application must be completed in a timely manner, and all dates on the purchase agreement strictly adhered to. As the lender verifies the information you have provided, he will sometimes ask you for more information. Please make sure that you provide all additional information promptly. This will help in making the loan process as speedy as possible.