Being pre-approved means that the lender is confident that you’ll make the down payment and that you have an income that can cover future payments. After pre-approval, the home needs to be appraised for an amount more than or equal to the purchase price. This is for the lender—they need to make sure the property value has sufficient collateral for the loan amount. While getting a pre-approval can help speed up the final mortgage approval process, other factors will affect the timeline. The pre-approval process may take around one to three days.
After you’re pre-approved, you receive a pre-approval letter as evidence that you have a lender that has already verified your assets. The letter is typically valid for 60 to 90 days. However, it can be updated with re-verification of the information.
The mortgage RMCR is the highest level credit report available. The cost of the credit report is $65.00. To receive a true pre-approval this is the only report accepted and is required by lenders as one of the first steps. Click “Get Pre-Approved” to have your credit evaluated by Glory Mortgage. After you order your report, click “Apply” to start the application process.
You might be tempted to roll up your sleeves and look into pre-approval. Before you do, make sure you understand the three basic stages of the mortgage application process: pre-qualification, pre-approval, and mortgage commitment.
Getting pre-qualified for a mortgage is a pretty informal process. You’ll get interviewed by a mortgage professional about your assets, income, and expenses. This process gives you a general idea of the price range you can afford. Pre-qualification doesn’t bring you any closer to securing a mortgage, but it does give you insights you wouldn’t have had otherwise.
If you’re preapproved for a mortgage, it’s because a lender has looked closely at your credit reports, your employment history, and your income. The lender used that information to determine which programs you qualify for, the maximum amount you can borrow, and the interest rates.
Please be aware that your loan officer is not the one who will ultimately approve your loan. That is the underwriter’s role. The initial stages of mortgage underwriting are often automated today. The automated underwriting system delivers a mortgage preapproval letter within minutes of a completed application and lists any conditions that need to be met for full approval.
A lender will issue a loan commitment after approving both you and the property you intend to purchase. The underwriter returns one of four decisions: approval, approved with conditions, suspended, or denied. Suspended means that the underwriting process requires more information or documentation from you.
If your first application gets rejected, you can get a second opinion from a lender if you have a very good reason why you should be approved.
No more "generic" pre-qualification letters and wasted time. We do things differently. We understand that when you are under contract, time is of the essence. Therefore, we will have a underwriter review your credit and income BEFORE you spend time on showings for a home, minimizing your time to close and eliminating guesswork. In most cases, we can confirm your buying power within 24-48 hours. All you pay is $65 for your mortgage credit report, which will be good for 90 days. Our company uses Advantage Credit Inc. We do not accept outside reports.
And if you report is not quite ready, we will work with you and guide you every step of the way to getting you ready. Lets get started. Click Get Pre-Approved to order your credit. Once ordered, Click Apply to securely send us your documents (create or sign in to the portal).
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A person who has not legally held title to a home within the past three years. Even if you previously owned a home, if this describes your current situation, you would still be considered a first-time home buyer.
First-time home buyer closing costs can add up quickly and seem overwhelming. However, there are several loan programs for assistance with down payments and closing costs, including charitable and government-sponsored programs. Local and federal tax credits can lessen the bite, and educational programs can offer help at every step.
A down payment can be a significant initial expense when you buy a home, and it's required for most types of mortgages. Fortunately, many lenders accept down payment assistance, which can help you cover the upfront costs of a down payment. Down payment assistance programs are typically grants or second loans, and many are exclusive to first-time buyers. The specific assistance programs you qualify for can impact how you can use your funds and whether you'll need to pay them back.
Not sure you can cover a down payment on your own? You may also be eligible for down payment assistance programs through a few specific types of loans to reduce the amount you have to bring to closing to finalize your loan. A few options include second mortgages, deferred payment loans, and forgiven loans. Loans structured as a second mortgage must be paid off simultaneously with your primary mortgage.
They must be paid in full when you move, sell, refinance, or pay off your primary mortgage. Loans can also be forgiven over a set number of years – but will need to be repaid when you move, sell, refinance, or pay off your primary mortgage if you move before that set number of years expires or otherwise violate the terms of forgiveness.
You may be able to get DPA through grants, which don't have to be repaid. Program requirements for loans and grants may vary, so it's best to check with your local or state government for details on any first-time buyer down payment assistance programs.
A loan backed by the federal government can also help qualified first-time home buyers purchase with no down payment – we'll cover these types of loans in more detail below.
Unfortunately, you can no longer take advantage of the Housing and Economic Recovery Act's $7,500 credit for first-time home buyers. The program ended in 2010. However, you can still save money on your taxes through various deductions. Federal and state deductions can lower your taxable income. For example, you can deduct your mortgage insurance costs for a primary and one vacation home from your federal taxes if your mortgage is worth less than $750,000 ($375,000 if married filing separately). This deduction has currently been extended through the 2021 tax year. Tax deductions include private mortgage insurance (PMI) and mortgage insurance premiums (MIP) associated with FHA loans, USDA loan guarantee fees, and VA loan funding fees. You can also deduct the paid interest cost paid during the year on loan amounts up to the above limits for a primary and one-second home. These are perhaps the two most significant homeownership deductions. Additional deductions and credits may be available through your state or local government.
Like down payment assistance, government-sponsored and private programs can help you pay closing costs. Closing costs are additional fees you pay at the end of the mortgage process. Closing costs are typically around 2% – 6% of the total cost of your home loan. Like down payment assistance, closing cost assistance can come through a grant or loan. You can also look to your seller for help with closing costs, with seller concessions. The seller may be able to help with attorney fees, real estate tax services, and title insurance. They can also help pay for points upfront to lower your interest rate and contribute to property taxes.
You can take advantage of online educational programs and resources if you aren't sure how to start your home search. A first-time home-buying class can be free or low-priced and can teach you about loan options, the buying process, and how to apply for a mortgage. Browse real estate courses online and look for ones for first-time home buyers.
Some mortgage lenders offer their own down payment assistance. We have access to 3.5% down payment assistance in the form of forgivable or repayable secured loans, as well as grant programs, such as Chenoa Fund, Boost, Max One and more. 100% financing may also be an option!
Grants are a type of housing assistance that provides a one-time cash sum, often in the form of a no-interest second loan, to cover all or part of a down payment or closing costs. The funds don’t have to be repaid.
These are similar to grants, but they must be repaid, usually over the course of a few years. Since you’ll be repaying this loan in addition to your regular mortgage, you’ll have a higher monthly payment.
These types of loans generally don’t charge interest but usually need to be repaid in full when you sell your home or refinance your mortgage. Many times, these are zero-interest loans, which means you are only responsible for repaying the amount you borrowed initially.
These are similar to other kinds of assistance, but you might never have to pay them off. Generally, forgivable loan debt is erased after a certain period of time so long as you still own the home and are up-to-date on your mortgage payments.
The vast majority of down payment assistance is offered to first-time homebuyers. Many cities and counties have other housing programs available, but down payment assistance is typically reserved for those who have not owned a home in the last three years.
Many programs restrict owners of rental or investment properties from participating, so you’ll need to be a first-time homebuyer (or haven’t owned a home in the past three years) and the home should be your primary residence. If you’re unsure if you qualify, contact the program before you apply.
Down payment assistance can potentially give you money that can help you afford a down payment, or it can help with closing costs, which are the fees and charges you pay when you finalize your mortgage. These total approximately 2 percent to 5 percent of the loan principal (and more when you factor in the escrow for insurance and taxes). For instance, on a $200,000 loan, the closing costs could be around $4,000. If all of your money has gone to saving for a down payment, you might need help to pay closing costs.
While a few programs exist at the federal level and even with some individual lenders, the majority of down payment help is offered at the local level through state, county, and city government programs, and comes in the form of a loan, grant, or matched savings.
Are you Interested in Getting Pre Qualified?
When applying for your mortgage, here are expectations for me as your loan officer and participation in the loan process as the Borrower.
My colleagues are here to assist you in navigating every step. Once you apply, our loan processor will be your direct contact in helping us along the process of collecting documentation and getting your loan ready to be sent to the processing and underwriting department for approval. She will be directly corresponding with you regarding your mortgage approval steps.
For a prequalification, only your ID is needed, however, it may not be accurate based on your information. So in order to receive a full pre-underwritten mortgage pre-approval letter (which must be attached to the Offer to Purchase once you select a home), we only need a few more documents.
Here is a short list of 6 items needed for your pre-approval prior to home shopping. Please gather the following preliminary documents within the next 24-48 hours:
The sooner we have these 6 documents listed above and the official credit report (hard pull), the faster we can get a proper pre-approval issued. Once you have gathered the documents, we will send you a link to upload them through a secure portal.
We encourage you to gather your qualification documents and scan or convert them as soon as possible, and please make sure they are complete and all the documents on the list are present.
If you don't have a scanner, you can download Adobe Scan on your mobile device (for iPhone or Android). It is a free app that allows you to scan physical documents with your camera on your phone. Watch a tutorial here.
Being proactive in having all of your documents ready will expedite the loan process. We utilize a state-of-the-art, securely encrypted portal to facilitate the application and document upload process and provide you with updated status on your loan while safeguarding your information.
We encourage you to utilize the portal as it is easy to use and ensures that your lending team is alerted when documents are added and status updates to your loan. For your protection, we do not accept emailed documents. All documents must be uploaded into the portal. You will be able to check your status and make changes when needed.
We recognize that buying or refinancing your home may be one of the most significant monetary transactions you will do in your life. We are highly committed to making that experience as stress-free as possible. Please consider me a resource for any questions or concerns during this process.
Additional helpful links:
Thank you for entrusting your home purchase with me, and I look forward to working with you.
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