Real Estate Loans and Finance Issues
Mortgage loan pre-qualification is generally the first step in finding a new home.
Pre-qualification will give the borrower the range of home loan they can receive. This helps them target the range of houses to search. This information can save days and even weeks of looking at the wrong priced of property. Once a home shopper know the amount of mortgage payment they can afford they cant focus on the proper house and neighborhood.
Mortgage pre-approval gives an advantage over other buyers who haven't been pre-approved.
Because a home loan pre-approval includes a credit check, it's more powerful than a pre-qualification letter. Also applying to get mortgage pre-approval has an advantage of finding out about any problems with loan approval. Working with a professional mortgage broker can help solve issues with the loan approval.
Apply for a Mortgage
The mortgage application is one of the more straightforward parts of the real estate loan process. Basically everyone completes the Uniform Residential Loan Application also know as the 1003.
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Loan to Value
“To lend or not to lend” is the Lender’s question
Loan to value (LTV) is one of the key issues a lender needs to resolve before they make the loan. If the mortgage has a high loan to value it may not meet the guidelines of the mortgage. The loan to value ratio must meet the requirements of the lender for a particular loan.
Mortgage Application Checklist
The mortgage application requires a good deal of information. The information as well as the documents proving the data can feel very personal. The lender is required by some laws to ask for some data. Other data is the lender’s policies and lending guidelines.
Housing Sacramento Real Estate loans web site HousingSacramento.com has many resources. They have loan rates, news items and a step by step guide to the loan process.
The first step in obtaining a loan is to determine how much money you can borrow. And from there the resources give good information and helps.
As always if you need help with the mortgage process you can ask your Coffee Real Estate agent.