Sunday, September 11, 2011

Pre-Approval For Louisville Mortgage

A Louisville Mortgage pre-approval is issued by the lender and is used by the real estate agent. This pre-approval is presented to the seller when an offer is made by the borrower on the property. This letter shows the agent and seller that the buyer is approved for an Louisville Ky FHA, VA, KHC or Conventional loan. Although it is not a final loan commitment, it can result in a faster loan closing if it has been done correctly since there should not be any surprise financing issues with the final transaction.

In order to receive an Louisville Ky FHA, VA, KHC or Conventional loan pre-approval, a loan application must be completed. The potential home buyer must provide all of the necessary documentation required as follows:

2 years W2s and tax returns (if required)
1 month most recent pay stubs with year to date earnings
Letters of explanation for employment gaps or new line of work
Social Security, pension and retirement income award statements
2 most recent months bank statements, 401k statements, investment statements
Child support documentation
Rent and landlord information
Bankruptcy discharge papers (if needed)
Signed gift letters
Credit report (supplied by the lender)

There may be additional documentation required once the paperwork has been examined. In any event, FHA, VA, KHC, USDA, and Conventional loans  requires that a borrower must have a steady employment history with at least 2 years of employment at the same employer or same line of work. Employment must show a steady or increasing income. The credit history must be in good standing as FHA, VA, KHC, USDA, and Conventional Fannie Mae Loans are interested in a borrower’s reliability for paying back the mortgage. Once these documents have been collected from the borrower, it will be reviewed and approved by an Louisville Ky Mortgage  underwriter with conditions. Any conditions related to financing should be addressed and cleared prior to receiving the pre-approval letter.

The Louisville Mortgage  FHA, VA, KHC, USDA, and Conventinal Fannie Mae loan mortgagea pre-approval letter will have an effective date and expiration date. If the loan has not closed prior to the expiration date, the documentation will need to be updated and the process will have to be repeated. Any documents and information, such as property address, appraisal, title commitment, fully signed sales contract, etc. that the underwriter has conditioned for will appear on the Louisville Mortgage FHA pre-approval letter. The letter will also state the approved loan amount so that a borrower can place an offer on an appropriately priced home. In the event that any information changes, such as interest rate, employment or credit, the Louisville Mortgage FHA pre-approval will not longer be valid. The underwriter must review the new documentation and recalculate the pre-approved mortgage again. When there is a signed sales contract, the appraisal and title will be ordered and all conditions will be required to be cleared, At that time, the FHA underwriter will again underwrite the mortgage for a final time prior to closing.

Getting a pre-approval for an Louisville Mortgage  mortgage for a home purchase will make the final closing of the loan faster. It also helps both the borrower and the real estate agent know what type of home to look for and what sales price the borrower is able to afford. For these reasons, it is important for a borrower to have the necessary documentation ready prior to looking for a home so that getting a pre-approval for an Louisville Mortgage  mortgage will be a thorough and quick experience.

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