Many buyers believe in this world of instant gratification, that they can go online, get pre-approved, and then run out and buy a house.
The reality is that the process is a lot like buying a car. In order to decide if this person is capable of buying a car, the salesperson gets some basic information; sometimes before they even allow a test drive! They walk around the corner and run a preliminary credit report. That's like a pre-approval. Once the person picks a car and is ready to take it home, the hour long meeting iwth the auto dealership finance manager is where an actual loan application is prepared along with the vehicles purchase order.
Home buying has its obvious differences. There are inspections, there are appraisals, there's REALTORS!
The pre-approval varies depending upon the lending institution. It could be just a quick credit scan, or it could involve a more careful look at the applicant, including collecting W-2's and bank account information. Ultimately though, its still just a pre-approval. Think of the loan officer or lender as a loan salesperson.
Once the home buyer chooses the right home, makes an offer, negotiates with the seller and comes to an agreement, and resolves the inspection contingency*then they are ready to move to the next step in lending...THE LOAN APPLICATION.
Like car loans, the mortgage application is on a specific property. The application collects all the information needed to fully evaluate the applicant and the home.
The typical application will include the following:
1. Application itself
2. Tax Returns for past 3 years
3. W-2 Forms
4. Bank Account Information
5. Investment portfolio information
6. Explanation letters (for blemishes or abnormal deposits)
8. Condominium or homeowner association Questionaire (if applicable)
Once the application is complete with all its associated forms and attachments, it is sent to the underwriting department of the bank to re evaluate the buyer by employees called UNDERWRITERS that don't directly benefit by commissions like the loan officer does. Their interest is protecting the banks money from an applicant that would be likely to default.
Situated in well-established Windsor Springs on a corner lot, this 2-story 4Bdrm, 2.5Bath Colonial has over 2300 SQF, center hall floor plan w/both a formal Living room &...
Exceptional Executive Fully CUSTOM Engineer Built Energy efficient Estate Home on a peaceful, picturesque private 4.3 acres setting in Sunset Hills. 2 Level Elegant Livin...
Sunset Hills ~ Expansive Ranch in Lindbergh School District with over 3400 sq ft on 1.03 acres ~ Reinvented with surprises at every turn. Gorgeous all white kitchen overl...
Welcome to a Beautiful Custom Built Sunset Hills Ranch in Desirable Park Haven Estates+ Lindbergh Schools! Everything you've been waiting for: 3 Bedrooms, 3 Full Bath Ran...
1.5 Sty on 1.01 acres w/4Bds/3.5Bth & 3700+Sqft of living spc. Open Foyer w/transom window! Dining Rm w/bay window & plantation shutters, Living Rm w/custom FP & French d...
This stunning home is an entertainer’s paradise! Details throughout incl: crown molding, wainscoting, deep baseboards; Dining room offers deep tray ceiling; Family room w...
This well built custom home with outstanding features becomes available for the next new buyer. Its seclusion and convenience is what also defines this home, situated on...
Jan 2019 finished lower level adds 600+ sq ft: family room, 5th legal bdrm & walk-in closet & full bath! Situated on a premium corner lot, an impressive leaded glass entr...
Back on the market-Contingency Fell Thru! Sprawling ranch on a gorgeous lot, filled w/the finest amenities. The inviting open floor plan leads you into the dining rm & gr...
OPEN HOUSE CANCELLED 2/10/19. Welcome to this beautiful private enclave on 3.24 acres in the heart of Sunset Hills! This 4 bedroom 5 bath home is over 4,400 sq ft of luxu...
Premier Realty Exclusive has provided the above Real Estate Encyclopedia for informational purposes only. Any legal matters discussed are provided with the understanding that any legal questions or problems experienced need to be brought to the attention of a real estate attorney. The best way to learn about real estate is the interaction a prospective real estate customer can have with expert Realtors. In addition to the experience and knowledge of the Realtor,plus the interaction and questions that come up, Realtors at Premier Realty Exclusive offer information on specialists in lending, appraisals, inspections, surveying and insurance agents. All professionals are provided as a service are screebed and have a proven record of experience throughout real estate transactions.