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This information is provided by Union Centre Mortgage. Please click here to visit their site.
Pre-Qualification vs. Pre-Approval
When someone is pre-qualified this typically means they have told a loan
officer how much income is coming in, how much money is in the bank, and
the
state of their credit. Based on the information a loan officer can
calculate the approximate price range for that scenario. However, just
because they are pre-qualified for a certain amount does not mean that
is
the actual amount a person would be able to purchase.
Getting pre-approved is the best way to know what you can purchase. By providing the items needed to get pre-approved you can rest assured there will not be any surprises later in your transaction.
Benefits of Pre-Approval
The person who approves your loan is the Underwriter. Because the
Underwriter has final say on your loan, it is important to get your
documents to this person as soon as possible. When you initially call
and
tell the loan officer your scenario there is fairly good idea of what
you
could buy based on that information. The next step will be to pull a
credit
report.
The credit report will be pulled to make sure your credit is acceptable to the loan program you are applying for. Seventy percent of the time a credit report has inaccurate information that could hurt your chances of approval. Because of this strong possibility it is very important to get your credit pulled quickly. As long as there is time to fix the inaccurate information before your closing then there is not much concern.
Based on the fact that a pre-qualification leaves too much room for error it is important to get pre-approved before looking for a home. Pre-approval will analyze your documents and assure you that you are looking at what your budget will truly allow. Do not take chances with disappointment and frustration, only base your home search off of your pre-approval.
Types of Loans
We offer a wide array of loans that are processed, underwritten, and
funded
here in our Lebanon office. Having everything on-site makes the loan
approval process easier for you and your clients. The programs
available
in-house are as follows:
FHA - No credit score required by FHA, alternative sources such as 12 months utilities, cell phone, car insurance, et.c paid on time are acceptable. 2 years since Ch. 7 bankruptcy discharge; 1 year on Ch. 13 o.k. FHA interest rates have been the same as Conventional in recent months.
Conventional - Up to 100% LTV with $500 buyer contribution.
VA - We have helped numerous Veterans get no money down financing using their VA eligibility. The VA has sped up its appraisal turn time to about a week after the appraisal order has been placed. Much quicker than the 2-3 weeks it took previously.
Jumbo - Up to $2,000,000.
No Documentation / 95% LTV - No doc loans do not consider income or assets. The credit score and down payment amount are the only items that are considered. Easiest loan in the market, a lot of business owner's use this to reduce paper work.
Stated/Stated / 95% - 2 years in the same line of work verified by a CPA or business license. Income is not verified, just stated. Many self-employed individuals use this option because they may not be able to prove their actual income. Assets can be stated also.
Interest Only Loans - This allows a borrower to pay the minimum payment each month for up to 10 years. They are relying on appreciation to build equity rather than paying down principal.
Investment Loan 80/15/5 Stated Income - This allows an investor to purchase with only 5% down and pay no mortgage insurance.
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