How long is my Letter of Approval valid?
If the information you provided to us remains the same, the letter of approval will remain valid until you close your loan. If any of the information you provided to us changes, such as your income or debt, we will need to re-evaluate your approval. We will also need your permission to re-evaluate your credit every 60 days to make sure nothing has changed.
If you have not decided upon a rate lock option, you can obtain a new letter by changing your personal information online and resubmitting.
If you have already chosen a rate lock option and paid your fee, you will need to call your Loan Processor for an updated letter.
What does a mortgage lender consider when making a loan decision?
- A mortgage lender generally looks at three areas:
Income and Assets: To determine your ability to repay the loan.
Debts and Credit History: To evaluate your buying habits and your history of repaying other financial obligations.
Property Information: An appraiser compares the home you are buying to similar homes in your area to make sure the property provides sufficient collateral for your loan.
How much does it cost to get a loan decision?
It doesn’t cost you anything! We will give you a loan decision free of charge. We do charge a NONREFUNDABLE $350.00 fee, only when you decide to submit your application.
How long will it take to get my loan decision?
In most cases, you will receive a mortgage pre-approval in minutes, after you complete the six easy steps and submit. However, there are always situations that will need further review before we get back to you with a loan decision.
Can I change the loan amount, down payment or program after I’ve received my loan decision?
Yes, as long as you meet the criteria for the new loan amount or new program you’ve selected. Your personal mortgage processor can help you determine if you meet the requirements.
If you have not decided upon a rate lock option, you can make changes to your information online and resubmit for a new loan decision.
I already put earnest money down on the property. Is this included on the Good Faith Estimate?
Yes. Any earnest money paid is listed under “Prepaid deposit for property” on the Good Faith Estimate. Please make sure you list your earnest money in Step 5: Asset Information.
What documents will I need to provide to complete my loan transaction?
We have included a list of some sample documents you may be required to submit. This list is not all inclusive.
- A fully executed agreement of sale for the property being purchased
- Financial statements for bank and brokerage accounts
- A HUD-1 settlement statement on the property you are selling
- Copy of your most recent pay stub
- Previous W2s
- Copy of a rental lease
- Form 4506
- Homeowner’s insurance policy
- Flood insurance policy
What is a 4506 form?
A 4506 form is an IRS form, which authorizes a mortgage lender to obtain copies of a borrower’s tax returns directly from the IRS.