Question 1

What is an approval letter*?

Accepted Answer

An approval letter comes from the lender. The letter states that the lender agrees to provide a mortgage to you, the homebuyer, under certain conditions. Approval letters help you set realistic goals while you’re house hunting. Additionally, they can provide you with the same negotiating ability as a cash buyer and enable you to move quickly once you find the perfect home.
 
Do I have to pay for the approval process? 
No. We invite you to use our website for information, to compare interest rates and terms for various loans. Then contact us to get the process started.

Question 2

Should I get approved before home shopping?

Accepted Answer

Absolutely. If your credit score and finances are already in order prior to your house hunt, the process goes much smoother. The approval process is simple:
 
1. Gather your personal financial information such as bank statements, W-2 forms and paycheck stubs, and meet with your PrimeLending loan officer.
2. We will pull your credit report and an underwriter will evaluate your financial documents. With this information, we are able to discuss the best home financing options that will help you achieve your financial and homeownership goals.
3. Once you are approved, PrimeLending will give you an approval letter to inform your real estate professional and the seller of the property that you’re a preferred and serious potential buyer. This will give more weight to any offer you extend on a property as well as allow you to relax and enjoy the process of looking for your new home.

Question 3

What documents will I need when applying for a mortgage?

Accepted Answer

The typical documents that you’ll need are those that verify your income, employment and assets. However, every situation is unique and could require more (or less) documentation. Here are docs that are always required:

• W-2s and tax returns for past two years
 • Driver's license for all borrowers
 • Two most recent pay stubs showing year-to-date earnings
 • Checking and savings account statements for past two months
 • Most recent retirement or investment account statements

Question 4

What inspections or appraisals does the lender require?

Accepted Answer

https://www.youtube.com/watch?v=0ZO59DcmFME

The lender requires a home appraisal on most transactions. If the appraiser recommends repairs or if repairs are mentioned in the contract, the lender may require that those repairs be completed before closing. The appraiser then will perform a final inspection to ensure that the repairs were completed.

Question 5

What does waiving escrows mean?

Accepted Answer

When you waive escrows, you take the responsibility of paying your taxes and insurance rather than having them included in your monthly payment. Waiving escrows may add a fee to your closing costs. You can only waive escrows if your loan program allows for this.

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*All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply.

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