loan commitment? - oh ok....

How solid is a loan commitment?

There are many schools of thought regarding what an actual "approval", " pre approval", "loan commitment" and tons of other similar terms mean to a borrower.

Many times loan officers and realtors alike put on blinders when looking for that magical pre approval letter that allows their client to go find a house. But is it always a solid commitment everyone can stand behind?

But you said....

After almost 20 years of making loan decisions and funding deals I can offer up some insight to the question, "what is a loan approval - really?"

In today's mortgage lending environment especially, but it really has never changed, a solid loan approval is when the following has happened.

Income, assets and any other supporting documentation has been received, a loan package has been delivered to underwriting and an underwriters has validated the file and issued a thumbs up.

Until this process happens, the truth is you are dealing with a make believe loan.

So the underwriter says all is good - now what?

An underwriter is not only responsible for the credit side of the file, they need to sign off on the "legal" side of the file. How a title report comes back from the abstractor can have a huge effect on a deal. Title work is usually not ordered until a contract has been signed by all parties.

Here we go again, a completely underwritten credit file by the underwriter and the title report comes back with issues.
Sure the chances are slim that title, appraisal, home inspection reports will hold up a deal... until it happens to you.....

Our lending team prevents surprises by collecting all the documentation needed to approve a loan upfront, before any promises are made.

That sure is a lot of what if's...

But what if your loan was ready to close and the lender comes up with an issue because something was overlooked, a question was not asked, the loan was not approved by an underwriter.

A pre approval is not worth the piece of paper it is written on until a credit file has been submitted and approved by an underwriter.

I built my company supplying high quality information and delivering nothing but the facts. I can not do business any other way. If you have a mortgage related question, gives us a call or visit the website. We look forward to working with you soon.

Will Steneman - President & Founder
Happy Mortgage
877-611-happy
will@happymortgage.com
www.happymortgage.com