"Were not here because were free, were here because were not
it's the space to dwell that selects you"
-Jonathan Arafat President of EBLOCK LOANS
"Therefore, it's important to recognize that in some respects,
free. There's no escaping reason, there's no denying purpose."
-Agent Smith
The Simulation
Debt/Income
REO
Credit
Assets
Loan/Value
Housing
Expense
Property
Income
What is a Pre-Approval for a Mortgage?
A mortgage pre-approval is a crucial step in the home-buying process. It's essentially our commitment to provide you with a loan for your potential home purchase, pending certain conditions. Here's what a pre-approval entails:
Financial Assessment:
To get pre-approved, you'll need to provide your financial information, including but not limited to income, credit score, debt, and available asset data. We will assess this information to determine how much you can borrow and what program and interest rate/fee combination is recommended.
Conditional Commitment:
A mortgage per-approval is also a conditional commitment. Some conditions may include but are not limited to a valid sales contract ratified on a property, a satisfactory appraisal, and (if any) an action plan for an owned departing residence.
Shopping with Confidence:
Once you have a pre-approval, you can shop for homes with confidence. Realtors and sellers take pre-approved buyers more seriously because they know you're a serious and qualified buyer.
Rate Lock Option:
In some cases, we may offer you the option to lock in an interest rate. This can protect you from rate increases while you search for your home.
Streamlined Closing Process:
With much of the loan application process completed during pre-approval, you can experience a faster and more efficient closing once you've found your dream home. At this stage, any potential roadblocks and qualifying challenges are thoroughly addressed, ensuring a smoother path to home ownership.
Credit Repair:
In some cases we may extend our Credit Repair service. We can run your credit through AI powered simulations that will offer credit repair solutions.
* Denotes a loan approval check point
Preparation
Underwriting
Closing
*P1: Financial Assessment
Income, Property, Asset Credit, and Ratios review approval
P4: Offer Accepted
Terms of the Purchase Contract are established. Earnest deposit is collected
U1: Full Application
Full loan application prepared for e-signing
U4: Post Initial Underwrite
Appraisal, Title, Insurance, and Association (if any) documents are ordered
C1: Schedule Closing
Closing appointment is coordinated with all parties
C4: Wire Funds
You'll wire remaining funds to close to the escrow account of the Title Company
P2: Discovery
We'll cover available loan programs and Interest Rates
P6: Home Inspection(s)
Home Inspection is usually ordered with your Realtor
*U2: Package Loan
File is sent to Underwriting for the Initial Underwrite approval
U5: Remaining Documents
Remaining documents needed from you (if any) will be collected and sent to review
C2: Balance Figures
Loan figures for the final Closing Disclosure are balanced between all parties
C5: Final Walk Thru
Final walk thru of the house is coordinated by your Realtor
P3: Home Shopping
Home shop with confidence backed by your Pre-Approval letter
*P5: Fannie/Freddie
Financial profiled data submitted to AI (Fannie/Freddie) approval
U3: Prepare Early CD
Closing Disclosure is prepared for acknowledgement
*U6: Package Loan
File is sent to Underwriting for the clear to close review approval
C3: Closing Package
Final closing package is prepared and generated
C6: Keys/Closing
All closing documents will be signed at the closing table
P2
*P1
P6
P3
P4
*P5
U1
*U2
U3
*U6
U4
U5
C2
C1
C6
C3
C4
C5
*P1: Financial Assessment
The financial assessment portion of pre-approving a mortgage for a potential home buyer is of paramount importance for several reasons:
1. Determining Affordability:
Assessing your financial situation helps determine how much home you can afford. We analyze your income, debts, credit history and available liquid assets to calculate a suitable mortgage amount. This prevents you from overextending yourself financially, reducing the risk of default.
2. Interest Rate and Terms:
Your creditworthiness and financial stability influence the interest rate and terms we can offer. Stronger financial profiles are likely to secure lower interest rates and more favorable loan conditions, potentially saving you significant money over the life of the mortgage.
3. Budgeting and Planning:
A thorough financial assessment helps create realistic budgets and financial plans. It ensures that you can comfortably meet the mortgage payments while covering other expenses, such as utilities, property taxes, insurance, and maintenance.
In summary, the financial assessment during the pre-approval process for a mortgage is essential for determining affordability, securing favorable terms, and ensuring a smooth and successful home purchase. It helps both lenders and borrowers make informed decisions, fostering financial stability and responsible home-ownership.
First-time Home buyer loans provide lower down payment options and unique incentives for new homeowners.
Downgrading or upgrading from a departing residence involves moving to a new home of lesser or greater size, quality, or features, with the possibility of retaining your previous residence in some cases.
Owning a vacation home offers a personal retreat and family gathering opportunities.
Owning rental income properties from houses can offer a reliable source of passive income, potential tax advantages, long-term property appreciation, and the option to facilitate tax-deferred exchanges through a 1031 exchange.
Utilizing a delayed financing transaction allows for cash purchase discounts and subsequently obtaining financing through a cash-out refinance, optimizing cost savings and financial flexibility.
Temporary Rate Buydown options as a seller concession provide potential cost savings by lowering initial mortgage interest rates for a specified period, making home ownership more affordable in the early years of the loan.
A non-arm's length transaction is one where the buyer and seller have a pre-existing relationship, and leveraging a gift of equity from a family sale can be advantageous, making home ownership more affordable.
A transaction involving the use of a HELOC loan from a property you own to purchase another property is a method of leveraging home equity to fund a real estate investment.
Appraisal Gap (if any):
Your down payment toward equity is based on the lower of the purchase price or the appraisal value. If the property appraises for less than the purchase price, additional funds will be required at closing to cover the difference, unless there is a renegotiation of the purchase price and/or the possibility of seller concessions.
Appraisal Value:
Several factors influencing fair market value include, but are not limited to: Location, Size and Layout, Condition, Comparable Sales (Comps), Age and Construction Quality, Upgrades and Features, Lot Size and Landscaping, and Market Conditions..
Appraisal Waiver:
An appraisal waiver, also known as a Property Inspection Waiver (PIW) or Automated Collateral Evaluation (ACE), is usually provided by mortgage lenders or government-sponsored entities (GSEs) like Fannie Mae or Freddie Mac, subject to specific conditions. The eligibility criteria for obtaining such a waiver can vary, and certain conditions must be met.
Appraisal Transfer:
If you are currently in the process with another lender and need to switch lenders, you may have the option to transfer the appraisal. Specific conditions apply, so please contact us for further information.
An appraisal for a home is a professional assessment of the property's value, conducted by a licensed appraiser. It helps determine the fair market value of the home based on various factors.
Appraisal Information
Why Leverage a Realtor?
A Real Estate Agent plays a crucial role in the home buying process, acting as a liaison between buyers and sellers while providing a range of services and expertise. Here are the key services of a real estate agent in the home buying process:
1. Property Search:
Real estate agents help buyers identify properties that match their preferences, budget, and requirements. They can use their knowledge of the local market to provide listings that meet the buyer's criteria.
2. Market Analysis:
Agents provide information on current market conditions, recent sales, and pricing trends to help buyers make informed decisions about their purchase.
3. Property Viewing:
Agents arrange property showings and accompany buyers during these visits. They can answer questions about the property and provide insights into its pros and cons.
4. Negotiation:
Real estate agents are skilled negotiators. They help buyers make competitive offers, negotiate price and terms with sellers, and advise on counteroffers.
5. Contract Preparation:
Agents assist in drafting purchase offers, ensuring they include all necessary contingencies and legal protections. They also help buyers understand and complete required paperwork.
6. Problem Solving:
Real estate agents are problem solvers, helping to address any issues or obstacles that may arise during the home buying process, such as repair negotiations or unexpected delays.
7. Post-Closing Support:
Even after the sale is complete, agents may continue to assist with any post-closing issues or questions that may arise, offering valuable support and resources to new homeowners.
8. Professional Network:
Real estate agents often have an extensive network of professionals in related fields, such as home inspectors, contractors, and legal experts, which they can recommend to buyers when needed.
9. Legal and Ethical Obligations:
Agents must uphold legal and ethical standards in their dealings and always act in their clients' best interests.
In most cases, Real Estate Agents are compensated through commissions paid by the seller, but they work on behalf of the buyer to help them navigate the complex process of purchasing a home. Their expertise and support can be invaluable in ensuring a successful and satisfying home buying experience.
