- 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
- Many loan scenarios / Rates
- Rate Buy Down
- Impound Account – Collect 2-3 months of reserve
- A Lot of Documentation
- HOA Certification
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
Understanding your monthly payment:
Together, these four elements are commonly referred to as PITI.