During this series we have covered four Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut:
- Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – CHFA/FHA
- Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – VA & CHFA/VA
- Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – CHFA/USDA
- Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – FHA
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
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!
Andrea I can't thank you enough for the confidence that you have in me, and I hope to always live up to those expectations. You are truly someone that I enjoy working with because you pay attention to detail and ALWAYS have your Buyers best interest in mind.
Great stuff George, if you were in Salt lake City I would recommend you too. So can you drive on your new drive way today?
Hi George, People often call me telling me that they want to buy a home. One of the first steps I tell them to do is to get the pre-approval from a trusted lender. There's no way I can even set up their property search properly without knowing an accurate price range.
Hi George, well presented, I need to pay better attention to you.
George - This series has been a great source of information. Getting buyers to meet directly with a top-notch mortgage professional (like you) to do a full application would be my most preferred method. Having to ready to act buyer who is good to go only subject to appraisal is a win-win for everyone involved.
George ~ an excellent post and I am so glad you have emphasized how important it is to get a pre-approval from a reputable lender. This cannot be repeated enough.
Debbie, yes I drove on it for the first time today. It felt good after parking on the street for a couple of weeks :)
Jen, that makes perfect sense. That way no one is wasting their time and gas.
Ed, I always knew you were a wise man :) :)
Donna, yes that is the safest way, but all to often they already have a house in mind and are ready to make an offer and there isn't enough time to do it the best way.
Joan you are right, that Pre-Approval means very little if it isn't from someone you trust.
George, That's great that you still have some no down payment programs available. Here they are few and far between. I have someone buying one of my listings that is getting one but we are closing late because the state is back logged.
Marchel, our State Program CHFA is running a little long right now as well because of vacations. They are at about 6 days for final approval after we underwrite the loan and send it to them.
George your series on low to no down payment has been terrific. I am sure anyone considering a purchase would enjoy reading this info!
Bill thank you. I do hope that people make use of it.
George,
Excellent advice to new buyers! As a listing agent, I recommend that my Sellers ask anyone who writes an offer on their home, to be pre-approved. It is a much stronger step towards the purchase of the home.
It's a Good Life,
Fran
France that is great advice to your Sellers, and hopefully they follow it.
George--More good advice for both the consumer and agents. In this day and age I don't know why any agent would show houses to a buyer without a pre-approval letter. I hope to read more of your posts in this new group.
Mary, thank you for stopping by. I am glad that you found the post useful.
Hi George, first, thanks for joining our new group. Your input will surely help us all.
Our Mortgage system is a little different in Canada, but seeing the words "pre approval" through your post puts red flags up to us. People will go into a bank or see a Mortgage Broker and with a few clicks of the calculator, out pops a majic figure only to find out later that the credit check and employment records have not been confirmed.
We have to be careful to use the right people to get a real 'pre approval'
Thanks for your post.
Al & Peggy that is why the second Pre-Approval that I mentioned is the best one. With that Pre-Approval Emplyment is checked as well as everything else.
Good to know that George....us picky Canadians up here, like it to be checked out in th first place. But then our Mortagage people check again just before closing and we have to hope and pray the Buyer didn`t get fired or went out and bought a truck and loaded it with furniture!! No true safety net is there
Al and Peggy we also verify employment a second time before the loan closes, but credit is only pulled again if the Credit Report is to old.