Buying a home - Loan

Step One Pre Qualificaton Letter

App: Beginning loan precess complete a mortgage app

Processing:

• occurs between 5-20 days
• credit reports are reviewed by processor
• debt + payment history is reviewed

Underwriting:

• occurs between 21-30 days
• tells if Credit, Debt + Payment histories are acceptable for a loan 

Mortgage:

• loan is submitted to private mortgage insurer
• if there is not enough history it gets send back within 48 hours

Pre-closing:

• occurs between 25-30 days
• title insurance is ordered
• closing time gets schedualed if approval contingencies are met

Closing:

• occurs between 25-45 days
• receive money from loan 
• finish last bit of loan prcess
• buy the HOUSE

Down Payments:

•  important because of credit card crisis
• if you have bad credit history need to show good down payments
• Benefits of Down Payments

1. eliminates private mortgage insurance
2. smaller mortgage = less interest
3. instant equity

Time Frame:

• takes 3 to 4 weeks
• depending on type of loan

3 Things about buying a home

1. You are responsible for developing your budget
2. plan for the unthinkable
3. live within your means

What can go wrong when buying a house