There are a few steps here that may be truncated or left out only for ease of writing, but these are the major steps. That means your file is ready to go to the closing, where you'll go and sign your documents, wire any closing costs you have, and get the keys to your new home. Once any conditions are satisfied, you get your clear to close. But, before you get that clear to close, you'll have to lock your rate (it's part of the process of getting that clear to close). ![]() The guy that pre-underwrites the file is going to gather documentation at the beginning to make this process easier, allowing you to get your clear to close faster. These conditions can range from needing explanations for items in your bank statements, if you need to show more assets, things like that. Once the file comes back conditionally approved, you will be sent any conditions of the approval that need to be satisfied to receive your "clear to close". While all of that is happening on your end, your loan officer is ordering title and submitting your file to underwriting for conditional approval. The VA appraisal determines the value of the home according to VA. Once that inspection is complete and there are no red flags that could sink your contract (like needing a new roof) and/or require you to negotiate with the seller to cover these items, your lender will order your VA appraisal. Things here start going in tandem - you, the buyer and your agent, will schedule a home inspection (this is an out-of-pocket cost that is optional but highly recommended). Once you find the home you want, your realtor will structure an offer based off of the pre-approval and any discussions you've had with your loan officer to give you the best chance to structure a deal that gets accepted.Īfter your offer is accepted and you're under contract, your contract is sent to your loan officer. You look at listings, go to open houses, and so forth. Once you have that hard pre-approval in hand, you're ready to find a realtor who can help you find a place that fits within that pre-approval purchase price. By doing it this way, unless there's something that you didn't disclose (like you owe government debt, other undisclosed debts, problems in your bank statements, etc.), you stand a better chance of making it to close. You'll be able to see if you need seller concessions and how a deal should be structured to meet your particular needs. You're looking for a company that pre-underwrites their files when they pre-approve. In an ideal world, the process would be that you'd get a hard pre-approval before doing anything else. Brokers can give you a PAR rate (a rate with no points and no fees). In terms of retail lenders (like VU), whatever you're shown on their rate page includes points - points are a pre-paid fee to lower the interest rate for the life of your loan. So, instead of talking to a mortgage loan assistant at a large firm like VU, you'll generally be talking to the loan officer themselves. You'll also generally get better service because you're dealing with smaller-sized companies. By that, he means that brokers can choose whether to add fees or leave them out, rates and points are cheaper, and they don't have to work off of a rate sheet like retail lenders do. Brokers have way more flexibility in their pricing structure than a retail lender does. This is long, so please bear with me.įind a broker rather than a retail lender. Here's what he asked me to share, since he refuses to get a dang reddit account. Husband walked by me, asked what the hell I'm saying to you here. It'll come from my account because he doesn't share my reddit obsession (LOL). But, if you have specific questions, husband (a vet who is a mortgage loan officer specializing in VA loans) would be happy to answer for you, no sales pitch or pressure to use his services. ![]() Edited this response as I don't want to violate rule #2.
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