Tuesday, April 06, 2010

query: I have been pre-approved and have received a Good Faith Estimate, does that mean I am approved?

No.  Receipt of the Good Faith Estimate is the first step in selecting a lender.  The question on the table right now is - are YOU satisfied with the terms offered by the mortgage lender?

Your job right now is to speak with a few lenders and compare Good Faith Estimates. Lenders cannot charge you for that pre-approval or Good Faith Estimate so move fast, make your decision -  choose a lender.

Whichever lender you select will take you through a verification and approval process normally lasting 4 weeks.  They must obtain an appraisal, verify your credit, assets and income and then submit your file to a mortgage underwriter for formal approval.  You will know you are approved when you received a document called a COMMITMENT LETTER.  Read it carefully because there may be conditions.  YOU are responsible for meeting any conditions.  Work closely with your loan officer and respond to any request to make sure your transaction moves forward.

No comments: