During this series we have covered four Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut:
In this series Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, I also advised Buyers to attend a Seminar to learn about the Homebuying Process:
Knowing about what Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut is very important, because Buyers need to know what their options are if they have little or no downpayment, And being aware of the process that they will have to go through to find and obtain a loan on a house is equally important. But probably the most important thing that I feel Homebuyers need to go through the Pre-Approval Process so that they know which Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, and how expensive a house will they qualify to purchase.
Buyers whether they are First Time Homebuyers or not need to get Pre-Approved first. This is the only way that they will know what and how much they will qualify to purchase. It is highly unlikely that a Realtor will Buyer to go look at houses if they do not know what price range the Buyer is qualified to purchase in.
To determine this Buyer needs to contact a Loan Officer that will take the time to go through all the steps that are needed to Pre-Approve them such as:
- Pull their Credit Report
- Take a full Loan Application
- Submit the Credit and Loan Application through Automated Underwriting System.
It is important that at the bare minimum all three of these steps are done, because it is the ONLY way that a Buyer can be reasonably be assured that they will qualify for a Loan. Once the Credit Report is pulled it will provide the Loan Officer with all of the Buyer’s revolving debt, which will have to be taken into consideration in determining what they can afford. The Credit Report will also show the Buyer’s payment history, and Credit Scores. The Loan Application will include the Buyer’s Income, Residency, Employment, and Bank Information. Once all this information has been submitted, the Automated Underwriting System will determine if the Buyer is qualified to purchase a house within the desired price range. Once this has been done, the Loan Officer can provide the Buyer with a Pre-Approval Letter for them to provide to a Realtor.
A Buyer can also choose to take this Loan Pre-Approval Process one set further, and that is to actually meet with the Loan Officer and go through the formal Loan Application Process, in which they will provide all the need documentation just like they will do later once they have found a house. They will also sign a Loan Application and all the appropriate Disclosures, and an Application Fee will also be collected at this time, which will later be applied to the actual loan. The Loan Application, Disclosures, and the Buyers documents are then sent to underwriting, and will be underwritten just like an actual loan. The only difference between this Process and the actual Loan Process, is that there is no property at this time, therefore, no Appraisal will be done. By doing this the actual Loan Process will be much quicker once the Buyer has found a house and has a Sales Contract, because the Underwriter has basically already underwritten the loan up to a certain dollar amount. At that point the Buyer can choose to lock in an interest rate, an Appraisal will be ordered, and documents updated. At that point a formal Mortgage Commitment for a Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut can be given.
Buyers need to make sure that they are working with a Loan Officer that will take the time to go through everything that needs to be done in order for them to get the type of Pre-Approval that will truly mean something. If a Loan Officer is not willing to take the time to do what is needed to provide a Buyer with a meaningful Pre-Approval, then the Buyer needs contact a Loan Officer that will.
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Info about the author:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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George, I can't stress enough to my buyers that they need to make sure the mortgage professional they are working with is good. All I hear are stories of problems, and IMHO these problems could be avoided by using someone who knows what they are doing. And, my friend, you are at the top of my list.
Example, why wouldn't a mortgage professional know that the gift a parent gave to a child for a down payment has to be given as a check rather than cash? This should have been taken care of 2 months ago when the person first started the process, not 2 weeks before the scheduled closing. If this is an FHA reg and the mortgage professional did not know this, wasted time typing letters stating the money was a gift, getting sigs, and now this comes up?
You see, this is why I recommend you. I can lead my buyers to water, but I can't make them drink. They make choices that usually bite them.
So, all I can say is that anyone out there who is contemplating a mortgage in an area where George does loans, go for it! You will not be sorry. I can't say enough good things here!