Lending Today

PreApproval Process

  • There Must Be Income
  • Are You Comfortable With the Monthly Payment
  • What is Your Debt to Income Ratio
  • Do You Have the Reserves Required by the Lender

 Loan Factors

  • Many loan scenarios / Rates
  • Rate Buy Down
  • Impound Account – Collect 2-3 months of reserve

  Loan Approval

  • A Lot of Documentation
  • Appraisal
  • HOA Certification
  • Insurance

 Secure financing

1. Choose a loan officer or two. It is sometimes necessary
to get a back-up preapproval. Out of area lenders do not work
with the same timelines as in the bay area, i.e., a 30 day close.
The selling party may ask for assurance that the lender is able
to close within the timelines in the contract.

2. Make a loan application and get preapproved.

  • Preapproval is an application process and is
    a formal commitment from a lender stating
    how much you can borrow and at what rate.

3. Determine what you want to pay and select a loan option.

4. Submit to the lender an accepted purchase offer contract.

5. Get an appraisal and title commitment.

6. Obtain funding at closing.

Know your mortgage options – Three basic factors:

  • Down payment
  • Interest rate
  • Terms

 Understanding your monthly payment:

  • Principal
  • Interest
  • Taxes
  • Insurance

Together, these four elements are commonly referred to as PITI.