Monday, August 1, 2011

Home Loan Pre Approval in Louisville, KY

Home Loan Pre Approval in Louisville, KY

While the FHA does not require a minimum credit score for loan approval, it does use a standard for participation in its 3.5 percent down payment program. Borrowers with FICO credit scores of less than 580 must put down at least 10 percent

Your salary must meet the following two conditions:

1.Your gross (pre-taxes) monthly salary must be greater than 28% of the sum of the monthly mortgage and monthly tax payments.

2.Your gross (pre-taxes) monthly salary must be greater than 35% of the sum of the monthly mortgage, monthly tax and other monthly debt payments.

The pre-approval process is very simple and requires paying for a full credit report. You can expect to pay approximately $15.00-$50.00 per married couple or $15.00-$50.00 each for individuals who will be applying for a home loan. The loan officer will need your Social Security number, last 2 pay stubs, last 2 bank statements, last 2 years employment information, last 2 years W-2’s (possibly), and last two years income tax returns (possibly). (Requirements will vary from lender to lender

Step two: Pre-qualification

We’ll ask basic questions about your employment, income and loan history. We’ll also ask permission to run a credit report. Within 24 hours – and in some cases, the same day – we’ll respond with details of the loan and amount you qualify for. At this point we can also talk about any Down Payment Assistance Programs that might be beneficial to you.

Step three: Pre-approval

It’s time to complete your loan application by producing the necessary personal documents – for example, your W-2s (past two years) and pay stubs (past month). In fact, this is your chance to speed up the loan process by having your papers ready. For good measure, include copies of your bank, stock and mutual fund account statements for the past three months. Before you shop for a home, complete these three steps to receive your pre-approval letter. This tells a seller you’re eligible to borrow, which gives you buying leverage.

Step four: Final approval

We’ll be hard at work to obtain a title search and commitment for the loan and to secure an appraisal for the home. Our underwriter will validate all information presented in the loan application, calculate your income according to standard practice and evaluate your home appraisal. Once complete, we’ll contact you with the good news – “You’re clear to close!” Your loan officer – the same person you’ve worked closely with all along – will review your rate and payment details with you, then prep you for the closing.

Step five: Closing

We’ll schedule a time and location that’s convenient for you to sign the loan documentation. You’ll need to bring identification and proof of homeowner’s insurance as well as a cashier’s check for the down payment and closing costs, if required. Once everything is in order, the loan is funded and final disbursements are made. Most importantly, congratulations on your new home!

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