Saturday, November 23, 2013

Mortgage Home Loan Pre-Approval Process Made Easy By Anthony Jeanty From: Buyheremarket Enterprise.

Mortgage Pre-Approval Q&A - Getting Pre-Approved for a Loan.

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Mortgage Pre-Approval Defined

Pre-approval is when a mortgage lender reviews your credit and financial situation to determine how much they are willing to lend you.

Normally, you would do this before shopping for a home.

The idea is to get a rough idea what you can afford, and then shop within those parameters.

Later, after you've made an offer to buy a house, you would go back to the same lender for final approval.

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How to Get Pre-Approved for a Mortgage Home Loan
Before you start shopping for a home, you need to work with a lender to get pre-approved for a mortgage.

Pre-approval is basically a promise from the lender that you're qualified to borrow up to a certain amount of money at a specific interest rate.
This promise is subject to a property appraisal and other conditions.

In the pre-approval process, the lender looks closely at your credit and verifies your income (as opposed to pre-qualification, for which your information is not verified).

The lender then gives you a pre-approval letter, which says that your loan will be approved once you make a purchase offer on a home, and once you submit the following documents - the purchase contract, the preliminary title information, the appraisal, and your income and asset documentation.

Keep in mind, though, that pre-approval is not an absolute guarantee that your loan will be approved.

------------------
''REAL ESTATE INVESTMENT: HOW AND WHERE TO FIND MONEY TO BUY A PROPERTY}

''What it takes to get approved for a mortgage?

'' Documents you'll need to provide to get a true pre-approval...
What Documents Do You Need?

What documents are needed for mortgage pre-approval? This is another common question among first-time home buyers.

'' Learn How to Get a Mortgage with Any Credit Grade Get Started Now!

'' MORTGAGE LOANS: HOW TO UNDERSTAND THE HOME LOAN PROCESS?

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The pre-approval process will actually determine two things.

First, the lender will determine if you're even qualified for a home loan.

You must meet their minimum criteria for credit score, debt ratios, income, etc.

If you meet these requirements, the lender will give you a maximum loan amount.

They will also give you a pre-approval letter to use during the house-hunting process.

Note: Getting pre-approved for a mortgage loan is not a guarantee.

It does not obligate the lender in any way.

You'll face a secondary review process later on, in order to get your final approval. There's a lot more underwriting involved with the final approval.

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Most lenders have some version of this disclaimer on their websites.

Being pre-approved for a home loan doesn't guarantee you'll get the loan. In order to get a final approval from the lender, you'll have to go through the full underwriting process.

And that doesn't happen until you've Made an offer to buy a home. At that point, you would give your lender a copy of the purchase agreement so they could evaluate you and the property.

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Pre-qualification --

Through this process, you would provide the lender with very basic information about your financial situation.

This would include your monthly income and debts. Based on this, the lender will give you a ballpark amount they might be willing to lend you.

"Ballpark" is the key word here. It's not a very in-depth process. In most cases, you can get pre-qualified without even submitting a mortgage application

Pre-approval -- This is a more in-depth (and more useful) version of pre-qualification. When you get pre-approved for a mortgage loan, the lender will actually start to verify your financial background. This is what sets it apart from pre-qualification.

They will request a variety of documents from you, such as tax records and bank statements.

They will also check your credit score. The pre-approval process gives you a more accurate idea of how much you can borrow. That's why I recommend it so strongly.

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Why is it important to get pre-approved?

When you're ready to make a purchase offer, both your real estate agent and the seller will want to see a pre-approval letter.

This proves that you're likely to be able to make the purchase and, therefore, you can be taken seriously.

In a competitive housing market, sellers prefer a pre-approved buyer to those who, for all anyone knows, might be unable to close the deal.

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Why Do I Need a Mortgage Pre-Approval Letter?

Earlier, we talked about the benefits of being pre-approved for a loan.

Real estate agents will be more willing to work with you, and sellers will be more inclined to take your offer seriously.

You can actually include a copy of your pre-approval letter with your purchase offer.

This is a good practice, because it shows the seller you can likely afford the amount you're offering.

This letter tells people you've been scrutinized by a mortgage lender, and you've met their basic guidelines for approval.

In other words, you're a serious buyer! Put yourself back in the seller's shoes for a moment.

Wouldn't you want buyers to have a letter like this?

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Getting pre-approved for a home loan benefits you in several ways.
First, it helps you find a real estate agent.
Most agents will only work with buyers who have been "vetted" by a lender -- and who can blame them?

This process also helps you identity any financial problems that need to be fixed.
If your credit score is too low, or you have too much debt, you'll find out about it during pre-approval.
Last but not least, sellers will be more inclined to accept your offer.

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Here's a more complete list of benefits of getting pre-approuval:

Getting pre-approved for a mortgage helps you identify any problems you have (too much debt, a low credit score, etc.).
The sooner you can find about these issues, the better. It gives you more time to correct them.

Real estate agents will be more willing to work with you.
If you were an agent, would you spend hours out of your day to help someone who hadn't spoken to a lender yet? I wouldn't.
This is why most agents will only work with buyers who have a pre-approval letter.

Sellers will take you seriously. Put yourself in the seller's shoes for a moment.
Imagine you get two offers from potential buyers.
One has been pre-approved already and has a lender lined up.
The other buyer hasn't even spoken to a mortgage lender yet.
If the offers were for the same amount, which one would you take? It's sort of a no-brainer.
This is especially important in an active market, where multiple offers are a reality.
It also helps you narrow the field when house hunting.
Once you know how much the lender is willing to offer, you can shop within that price range.

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How Do I Get Pre-Approved for a Home Loan?
Most mortgage companies have an online pre-approval form on their websites. If you start the process online, you will probably have to follow up with some additional documents.
You can fax them, mail them, or deliver them personally

you can submit an application for mortgage pre-approval online.

But you will probably have to follow it up by sending your financial documents.

Lenders use the online process just to get the ball rolling. It's a good lead-generation tool for them, and it's convenient for you.

Once you fill out the form and click the "submit" button, you'll probably hear from a loan officer or broker within a few hours. They will follow up by phone or email to request additional information.

------------------
''REAL ESTATE INVESTMENT: HOW AND WHERE TO FIND MONEY TO BUY A PROPERTY}

''What it takes to get approved for a mortgage?

'' Documents you'll need to provide to get a true pre-approval...
What Documents Do You Need?

What documents are needed for mortgage pre-approval? This is another common question among first-time home buyers.

'' Learn How to Get a Mortgage with Any Credit Grade Get Started Now!

'' MORTGAGE LOANS: HOW TO UNDERSTAND THE HOME LOAN PROCESS?

-----------------------

What is involved with getting pre-approved?

In order to obtain a pre-approval letter you will need to contact a lender. You will typically be approved in 24 to 48 hours if you provide the lender with all the necessary paperwork.

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Documents you'll need to provide to get a true pre-approval

Your W2 from the past two years
Your paystubs for the past three months
Your tax returns from the past two years
Your checking or savings bank statements for the past three months (this will likely have your down payment funds in them as well)
Your statements for all your other assets (stocks, bonds, retirement accounts) for the last two months
The name and phone number of your landlord (if you are renting) or your current mortgage documents
Your divorcee decree, if applicable
If you are self-employed: Your business tax returns for the past two years in addition to your year-to-date profit and loss statement and year-to-date balance sheet

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Approval -- This is the final approval by the lender. It takes place after you have chosen a home and made an offer.

In order to reach this stage, you would need to give your mortgage company a copy of the purchase agreement.

You'll also go through an extensive underwriting process that could take up to 30 days. The lender will probably require a home appraisal as well.

In my opinion, every home buyer should get pre-approved for a loan (unless you're paying cash for the house).

It only makes sense when you think about it.

You could spend days or weeks looking at houses in a certain price range, only to find out that you're qualified for a lesser amount.

What a waste of time. But when you start with the pre-approval, you'll have a pretty good idea what you can afford

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Mortgage commitment

A lender will issue a loan commitment after it has approved both you and the property you intend to purchase.

Having examined all of the necessary documentation to verify your ability and willingness to repay the loan, your loan representative will submit your complete application to the underwriter.

The underwriter will return one of four decisions: approval, approved with conditions, suspended (which means they need more documentation from you before they can make a decision), or denied.

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IF YOU NEED HELP TO SELL YOUR REAL ESTATE PROPERTY IN SOUTH FLORIDA;

PLEASE CALL ANTONY A PROFESSIONAL REALTOR. AT: -- // Real Estate Blog / -- Real estate Service For Buyers And Sellers . //

Areas of Expertise: Real Estate, Insurance, Mortgages And Finance

We regularly go to the extra miles for our client satisfaction, step outside of the real estate practices to service our clients better.

Finding lasting solutions to complex issues and challenges far beyond our desk, and deep into our surrounding regional community, its history, its leaders and its vision for the future.

Anthony’s ability to simultaneously focus on these myriad aspects defines our value to clients.

--------------------------------------

Our Practice

If you combine solid Experience, Expertise And Proven Talent With Relentless Passion. You Get Innovation, and Much More Than That, You Get Outstanding Results. Anthony Jeanty - Real Estate Professional, REALTOR IN THE SOUTH FLORIDA AREA. ANTHONY PROFESSIONAL REALTOR.

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FHA Mortgage Home Loan Programs: Federal Housing Administration (FHA) Visionaire Business Center

The Federal Housing Administration (FHA)

What is the Federal Housing Administration?

The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories.

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What Is an FHA Loan, and Why Would You Want One?

The FHA mortgage program was created to make home ownership accessible to more people, and is administered by the US Department of Housing and Urban Development (HUD)

FHA does not actually lend money; it reimburses FHA lenders when borrowers default on FHA home loans. This reduces the lenders' risk, which makes them more willing to loan money, and keeps borrowers' costs down.

FHA mortgage lenders offer a variety of home loans designed to meet many needs, including:

------------------
''REAL ESTATE INVESTMENT: HOW AND WHERE TO FIND MONEY TO BUY A PROPERTY}

''What it takes to get approved for a mortgage?

'' Documents you'll need to provide to get a true pre-approval...
What Documents Do You Need?

What documents are needed for mortgage pre-approval? This is another common question among first-time home buyers.

'' Learn How to Get a Mortgage with Any Credit Grade Get Started Now!

'' MORTGAGE LOANS: HOW TO UNDERSTAND THE HOME LOAN PROCESS?

-----------------------

Mortgages to purchase single-family homes, condominiums and 1- to 4-unit multifamily homes (203(b) loans)
Mortgages for manufactured or mobile homes (with or without land)
Mortgages to rehabilitate or improve a home that you already own, or one that you plan to buy (203(k) mortgages)
Refinance mortgages, whether or not your current loan is with FHA
Reverse mortgages, called Home Equity Conversion Mortgages or HECM

FHA mortgages are especially well-suited to meet the needs of borrowers who need to finance more than 80 percent of their home’s purchase price or appraised value.

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FHA Mortgages Enable a Borrower to Finance a House with only 3.5% Down

FHA mortgages have been insured by the U.S government since their inception in 1934. The agency was originally founded in an effort to ensure that Americans get access to affordable financing.

Their initial focus was to guarantee fair housing, but over the years that agency began expanding their loan programs.

Many borrowers prefer FHA home mortgages because they only require a 3.5% down-payment on purchases and allow 96.5% Loan to Value for refinance loans.

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FHA loans can make your homebuying dream a reality with competitive rates and a low down payment.

Prepare for your FHA home loan with some important steps to make sure you can afford the mortgage.

IMPORTANT STEPS FOR FHA HOME-BUYERS

Purchasing a home is one of life's major landmarks and for some, it is even a dream come true. Securing an FHA loan is the most important piece of the homebuying puzzle. If you follow some simple steps, you can make sure that the process runs smoothly.

FHA Loan for Home-owners

knowing that your mortgage loan and credit report have been approved will allow you to shop for your new home with confidence.

And when you find a home and are ready to make an offer the fact that you have already been pre-approved for your loan amount will give the selle

Take the Steps to Get Your Mortgage

Purchasing a home is one of life's major landmarks and for some, it is even a dream come true. At FHA.com we understand the magnitude of this decision and it is our goal to make your transition into home ownership unforgettable.

Regardless of whether this is your first or your fifth home purchase we will do our best to ensure that getting you into your new home is a pleasant and memorable experience.

FIRST STEP

When you begin to seriously consider purchasing a new home it is important that you follow some simple steps to make sure that the process runs smoothly.

The first thing you should do is an analysis of your debt to income ratio. This important step will let you know what type of home you can afford based on your monthly income and expenses.

The next important step in purchasing a new home is to get pre-approved for a home loan.

The peace of mind that comes with knowing that your mortgage loan and credit report have been approved will allow you to shop for your new home with confidence.

And when you find a home and are ready to make an offer the fact that you have already been pre-approved for your loan amount will give the seller confidence in you as a buyer..

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How to obtain an FHA loan
FHA does not make loans. Rather, it insures loans made by private lenders. The first step in obtaining an FHA loan is to contact several lenders and/or Mortgage Brokers s and ask them if they are FHA-Approved by the United States Department of Housing and Urban Development to originate FHA loans. As each lender sets its own rates and terms.

The FHA makes provisions for home buyers who have recovered from "economic events".
Via the Back To Work - Extenuating Circumstances program, the FHA reduces its standard, mandatory three-year application waiting period for buyers with a history of foreclosure, short sale or deed-in-lieu; and two-year application waiting period after a Chapter 7 or Chapter 13 bankruptcy.

For buyers who can show that the economic event was preceded by at least a twenty percent household income reduction which lasted for six months or more; and who can show a satisfactory credit history for the most recent 12 months, the FHA will allow an application, and will agree to insure the home loan.
The Back To Work program lasts through September 30, 2016

FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans.

FHA mortgage insurance also encourages lenders to make loans to otherwise credit-worthy borrowers and projects that might not be able to meet conventional underwriting requirements, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements, including manufactured homes, single and multifamily properties, and some health-related facilities.

The basic FHA mortgage insurance program is Mortgage Insurance for One-to-Four-Family Homes (Section 203(b)).

FHA allows first time homebuyers to put down as little as 3.5% and receive up to 6% towards closing costs.

However, few lenders will allow a seller to contribute more than 3% toward allowable closing costs.

If little or no credit exists for the applicants, the FHA will allow a qualified non-occupant co-borrower to co-sign for the loan without requiring that person to reside in the home with the first time homebuyer.

The co-signer does not have to be a blood relative. This is called a Non-Owner-Occupied Co-Borrower.

FHA administers a number of programs, based on Section 203

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What is FHA Mortgage Insurance?

FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans.

The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default.

Loans must meet certain requirements established by FHA to qualify for insurance.

Why does FHA Mortgage Insurance exist?

Unlike conventional loans that adhere to strict underwriting guidelines, FHA-insured loans require very little cash investment to close a loan.

There is more flexibility in calculating household income and payment ratios.

The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment. In most cases, the insurance cost to the homeowner will drop off after five years or when the remaining balance on the loan is 78 percent of the value of the property -whichever is longer.

How is FHA funded?

FHA is the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing.

The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely.

FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.

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------------------
''REAL ESTATE INVESTMENT: HOW AND WHERE TO FIND MONEY TO BUY A PROPERTY}

''What it takes to get approved for a mortgage?

'' Documents you'll need to provide to get a true pre-approval...
What Documents Do You Need?

What documents are needed for mortgage pre-approval? This is another common question among first-time home buyers.

'' Learn How to Get a Mortgage with Any Credit Grade Get Started Now!

'' MORTGAGE LOANS: HOW TO UNDERSTAND THE HOME LOAN PROCESS?

-----------------------

A VERY BRIEF HISTORY OF THE FHA...

The History of FHA

Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965.

When the FHA was created, the housing industry was flat on its back:

Two million construction workers had lost their jobs.
Terms were difficult to meet for homebuyers seeking mortgages.
Mortgage loan terms were limited to 50 percent of the property's market value, with a repayment schedule spread over three to five years and ending with a balloon payment.
America was primarily a nation of renters. Only four in 10 households owned homes.

During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families after the war.

In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans.

When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash-strapped properties afloat.

The FHA moved in to steady falling home prices and made it possible for potential homebuyers to get the financing they needed when recession prompted private mortgage insurers to pull out of oil producing states in the 1980s.

The FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934.

FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio.

Important subsidy programs such as the Civil Rights Act of 1968
were established by the United States Department of Housing and Urban Development

In 1974 the Housing and Community Development Act of 1974was passed.

Its provisions significantly altered federal involvement in a wide range of housing and community development activities.

The new law made a variety of changes in FHA activities, although it did not involve (as had been proposed) a complete rewriting and consolidation of the National Housing Act.

Further changes occurred in the 1977 Housing and Community Development Act, which raised ceilings on single-family loan amounts for savings and loan association lending, federal agency purchases, FHA insurance, and security for Federal Home Loan Bank advances.

In 1980 the Housing and Community Development Act was passed; it permitted negotiated interest rates on certain FHA loans and created a new FHA rental subsidy program for middle-income families.

On March 6, 2008, the "FHA Forward" program was initiated. This is the part of the stimulus package that President George W. Bush had in place to raise the loan limits for FHA.

On April 1, 2012, the FHA enacted a new rule that requires their customers to settle with medical creditors in order to get a mortgage loan.

This controversial change was rescinded and postponed until July 2012 but was later cancelled altogether pending clarification and additional guidance.

------------------------
IF YOU NEED HELP TO SELL YOUR REAL ESTATE PROPERTY IN SOUTH FLORIDA;

PLEASE CALL ANTONY A PROFESSIONAL REALTOR. AT: -- // Real Estate Blog / -- Real estate Service For Buyers And Sellers . //

Areas of Expertise: Real Estate, Insurance, Mortgages And Finance

We regularly go to the extra miles for our client satisfaction, step outside of the real estate practices to service our clients better.

Finding lasting solutions to complex issues and challenges far beyond our desk, and deep into our surrounding regional community, its history, its leaders and its vision for the future.

Anthony’s ability to simultaneously focus on these myriad aspects defines our value to clients.

--------------------------------------

Our Practice

-------------------------

Financial Knowledge - Financial Literacy And Financial Education's Blog

Saturday, November 23, 2013

Mortgage Home Loan Pre-Approval Process Made Easy By Anthony Jeanty From: Buyheremarket Enterprise.

Why is it important to get pre-approved?

Why Do I Need a Mortgage Pre-Approval Letter?

Mortgage commitment

Areas of Expertise: Real Estate, Insurance, Mortgages And Finance

We regularly go to the extra miles for our client satisfaction, step outside of the real estate practices to service our clients better.

Finding lasting solutions to complex issues and challenges far beyond our desk, and deep into our surrounding regional community, its history, its leaders and its vision for the future.

Anthony’s ability to simultaneously focus on these myriad aspects defines our value to clients.

FHA Mortgage Home Loan Programs: Federal Housing Administration (FHA) Visionaire Business Center

----------------------

What Is an FHA Loan, and Why Would You Want One?

IMPORTANT STEPS FOR FHA HOME-BUYERS

FHA Loan for Home-owners

FIRST STEP

Areas of Expertise: Real Estate, Insurance, Mortgages And Finance

We regularly go to the extra miles for our client satisfaction, step outside of the real estate practices to service our clients better.

Finding lasting solutions to complex issues and challenges far beyond our desk, and deep into our surrounding regional community, its history, its leaders and its vision for the future.

Anthony’s ability to simultaneously focus on these myriad aspects defines our value to clients.

About Me

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