Mortgage Approval Process
Understanding the Mortgage Approval Process
There are a number of technicalities in the approval process for a mortgage loan. And with the help of a mortgage professional, you can begin to understand all of the facets involved in the mortgage loan process.
When you are buying or refinancing a home, you need to be aware of down payments, mortgage rates, and updated program guidelines as they are all components of this critical process. Without this basic understanding, mistakes can be made and can heavily delay the purchase of one’s dream home.
One of the first procedures that is done in the process is that the mortgage lenders must first approve the borrower(s) that are seeking the real estate loan. This will be based on certain guidelines that are typically determined by the kind of loan program the borrower has opted for. Some of the things the mortgage lender looks at are the:
- Debt-To-Income (DTI) Ratio
- Loan-to-Value (LTV)
- Credit Score & History
- Property Type
- Applied Mortgage Programs
Steps for Mortgage Loan Approval
The first step of the home buying process is getting a mortgage qualification letter before you look for a new home via an agent. This pre-approval letter provides the home-buyer an idea about the monthly payments, all the down-payment requirements & the loan programs terms that they have to budget. In addition, it gives the seller & the agent much more confidence and a sense of security that this purchase contract will move through properly and close on time.
For additional information about the approval process for a mortgage loan, call Mortgages Done Right Inc. experts at (561) 777-7622.