Platinum Mortgage Company: Mortgage Underwriting and Final Approval


Mortgage Underwriting and Final Approval

After you make an offer on a home, you will go back to your lender for final approval. This is when your file gets sent to the underwriter, the person who has the final say as to whether or not you’ll be approved. Here’s what you need to know about final loan approval in 2012.

Mortgage-approval and underwriting tips for first-time buyers:

Many first-time home buyers fail to understand the difference between pre-approval and final approval. Believe it or not, you can still be turned down for a loan even though you’ve already been pre-approved by the lender. Pre-approval is not a guarantee or a commitment to lend. The deal isn’t done until the mortgage underwriter gives his seal of approval.

You may be given a list of conditions to satisfy before the lender will issue a final approval. For instance, they may ask for additional documents relating to your finances. This is the most common type of condition. In some cases, they might even require you to reduce a certain debt obligation. I’ve had a lender tell me that I had to pay down one of my credit cards before I could be approved. Just be prepared for these conditions–it’s a very common scenario.

Keep tabs on your mortgage package as it goes through the underwriting stage. The underwriting process is the last and largest obstacle to final approval. Keep in touch with your loan officer about the status of your application. Make sure the underwriter has everything he needs to move the process forward.

Keep your financial situation stable between pre-approval and closing. A lot of first-time buyers think that they are “home free” when they reach this stage in the process. But that’s simply not the case. If you go out and buy a new car while your loan is still being processed, you could throw off your debt-to-income ratio. It might even result in your loan being rejected. Try to spend as little money as possible during this process.

At this point, the only good change to your financial situation would be an increase of assets. For example, if you made a contribution to your savings account, it would probably support your cause. The worst thing you could do at this stage would be to decrease your assets in some way. So keep your hands off your savings account until the loan is approved.

If anything changes with your financial situation, let your loan officer know about it. Remember, he or she is on your side at this point. The loan officer wants the deal to go through almost as much as you do. This is how they make a living. So you should keep them informed of your financial situation.

Have a backup plan in case the deal falls through. It’s common for mortgage loans to fall apart during the underwriting stage, especially in the current economy. Lenders are a lot more strict today than they were before the housing crisis. It’s not a pleasant scenario to think about, but you still need to have a plan in place. What will you do if your mortgage gets denied? How will it affect your current living arrangements?

SOURCE:

Read more: http://www.homebuyinginstitute.com/mortgage/first-time-buyers-167/#ixzz1tekhIBWT

Visit Our Website: http://www.pmccanhelp.com/

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About pmccanhelp

Platinum Mortgage Company has been in mortgage brokering business for over 26 years in the state of California. Our broker platform provides direct access to a wide array of Real Estate sales, financing programs, and related services. Our process is very simple, direct, fast and user friendly. We are in business to help people obtain the American Dream and also to help our clients make a sound financial decision regarding their mortgage and investment needs. One of our largest investments we make in our lifetime is buying a home, which also will become one of our future assets. Most people don’t know where to begin. We partner with our clients to help them develop a plan and to know what steps are needed to get prepared to complete the transaction. It is our responsibility to educate the clients about the documents they will be signing upfront and at closing and also to go over the terms of the loans to ensure they have no unanswered questions. Part of our service to our clients is to teach them the benefits of homeownership. You will be giving yourself a raise that your employer cannot offer by purchasing a home. On average it puts 25% of the payment/property tax/mortgage insurance back into your savings, which will help us greatly obtain our retirement goals along with building equity we wouldn't receive as a renter. The average homeowner refinances their home 3 times and will never pay off their mortgage! Who could live off of $1200 a month in social security with no life savings? The goal for everyone is to be debt free into retirement and be financially fit. Many applicants have negative credit due to the countries financial hardship and have no idea on how to rebuild their credit. Helping our clients raise their credit score can save them over .25% in their interest rate for every 20 points they regain on their FICO score, which could be thousands of dollars in back end interest. We would be doing a disservice if we did not offer this to every client. The only other thing that is hindering a renter from buying is FEAR. We will overcome this simple hurdle together. "Homeownership will help boost our economy once again". Specialties:We have over 35 wholesale lenders we have partnered with to obtain the best rate for our clients and specialize in over 50 loan programs. We can even help first time homebuyers with 500+ FICO and specialize in helping clients with credit repair prior to obtaining a loan for the best rate available to save them thousands of hard earned dollars. We currently have 5 office locations: Roseville, San Diego, Westlake Village, Rolling Hills Estate, and Irvine.

Posted on May 6, 2012, in Mortgage, Real Estate and tagged , , . Bookmark the permalink. Leave a comment.

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