Most Real Estate Professionals and Lenders recommend that home buyers get prequalified with a lender before selecting a home to purchase.  This way you will have the best information about the right price range for your pocketbook.

Reasons to get Prequalified

With prequalification, you can determine which loan program best fists your need and which programs you qualify for.

You will know exactly how much you are qualifed for.  It's no fun to find your "ideal home" and then find out you cannot afford it.

Your monthly payment will be set.  This will allow you to budget your money before making this large investment.

It shows you what the down payment and closing costs will be.

If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which may allow you to afford more home for your money.

If you feel you would like and can afford a higher mortgage payment but are not able to meet qualifications, co-mortgager financing may be made available to you.


The Loan Process

One of the most important steps in the loan process is selecting a mortgage lender, and your Sales Associate is very knowledgeable in helping you make this decision.  Upon selecting the mortgage lender that's right for you, the following steps in the loan process will occur:

• Application - All pertinent documentation is obtained. Fees and down payments are discussed, and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing the rates and associated costs for the loan.
• Documentation - If not already completed in the pre-qualification stage, your Sales Associate will order all necessary supporting documentation. Once inspections are completed, your Associate will order an appraisal on the property. As it comes in, documentation is checked for any irregularities.
• Loan Submission - Once all the necessary documentation is in, your completed file is submitted to a lender for approval.
• Loan Approval (Underwriting) - Loan approval, or underwriting, generally takes 24 to 72 hours. All parties are notified of the approval and any loan conditions that must be received before the loan can close.
• Closing - Once all parties have signed the loan documents, they are returned to the lender. If all the forms have been properly executed, the lender sends the loan funds by wire transfer. At this point, the borrower finishes the loan process and actually buys the house.