Frequently Asked Questions

Q. What Is The Difference Between "PreQualified" and "PreApproved"? Why Do I Need To Be Pre-Approved?

A. Prequalification consists of a discussion between a home buyer and a loan officer. The officer collects basic information regarding the customer's income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The prequalification is not a full mortgage approval, but estimates what a home buyer can afford. A preapproval, on the other hand, is a comprehensive approach using basic information as well as electronic credit reporting. Preapprovals in most cases are true mortgage commitments. The lender commits to financing your home and indicates the total mortgage amount available to you. By talking to a lender prior to looking for a home, you will find out how much you can afford and the assurance that your credit is okay. When you make an offer, the seller will know that you are qualified and have a better chance of having your offer accepted.

Q. What Types of Mortgage Programs Are Offered?

A. There are as many as 50 different mortgage products available including: 15, 20 and 30-year fixed rate loans adjustable rate loans new construction financing VA and FHA loans Rural Housing Development loan programs First-time buyer state sponsored loan programs and many more, including mixtures of the loans listed above.

Q. How Long Does It Take to Process a Mortgage Application?

A. Usually 30-45 days, although it can take a little as a week and as long as 2-3 months for some types of transactions (such as foreclosure homes or short sales.) The time also depends on the type of loan you are getting and how quickly the lender can get the items they require such as title examination, appraisal, survey, termite certificate, etc. It also depends on how long it takes you to complete items you have included in the contract such as a home inspection, radon test, structural report, etc. The lender may need to verify your employment, get copies of your tax returns or your VA eligibility certificate. Ask your loan officer for an estimated time frame when you are pre-approved. Then you can include that time estimate in your offer to purchase.

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