Mortgage Advice

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Mortgage Disclosure

Mortgage Pre-Approval

• Before You Apply

What to do to prepare up to a year in

advance of your mortgage application.

• Can You Trust Your Loan Officer?

Who does your loan officer work for,

and how do you find the best one?

• Lender, Broker, Or Bank?

What type of loan Provider is right for

you?

• Types of Mortgage Loans

The types of mortgage loans and

their advantages and disadvantages.

• Types of Documentation

Your options for disclosing how much

you make and where it comes from.

• Underwriting

What does an underwriter look for

when analyzing your loan application?

• Pre-Approval

What it is and isn't and how it saves you

time and heartache.

• Credit

What it is, and how it affects your life.

• Income & Employment

How much you need to make and for

how long in order to qualify.

• Assets/ Down Payments

How much, where from, and what kind

of money will work.

• Down Payment Assistance

Short on funds? Learn about your

options and explore these resources.

• Processing

What happens to your application after

you sign it and before you close?

• Title

What is it, what does it mean, and how

does it work?

• Appraisals

What is your home worth, why you

should bother to find out, and how

does it affect your loan?

• Alternate Financing

Facing rejection? Time to get creative.

• FHA

Low down payment, forgiving

qualifications. A great loan option.

Which First, A Mortgage Or A House?

The most commonly asked question in the mortgage world is "which should I get first, a house or a mortgage?" As counter-intuitive as a chicken before an egg, the answer is "Get a mortgage first." The reasons are multitude but perhaps the most important is that it solidifies a commitment from a lender for a specific amount of house, which you can then shop for. Knowing exactly what you can afford screens out all the houses you may find adorable but nevertheless cannot afford.

The information in this section will show you the difference between a pre-qualification and a pre-approval, how each can help you, and what information and/or verifications each will require.

Pre-approval

A pre-approval, as opposed to a pre-qualification, is a formal agreement or commitment from the loan provider. Before issuing a pre-approval, which is most often accompanied by a pre-approval certificate, the provider will check your credit history and verify employment information, income, and assets.

Getting a pre-approval before you shop for a home will benefit you in three very important ways: once you are pre- approved, you will know exactly how much of a house you qualify for and therefore will shop only within your price range and; a pre-approval certificate is a negotiating advantage when facing a competitive bidding situation as a motivated seller may take a pre-approved offer over a higher offer that is not pre-approved; and lastly, your loan provider can (and should) lock your rate at the application. Having a pre-approval then can potentially save you a lot of worry and a lot of money.

Most loan providers charge an application fee for a pre- approval, as they are incurring costs and committing to working for you. Ask as you shop for a loan provider if they offer a refund of your application fee if you do not qualify. Most will not, which makes a provider who can enter your pre-qual. information into underwriting software much less of an app-fee loss risk. FHA requires that any unused portion of your application fee be refunded upon rejection.