Century Funding, Ltd. - Getting Pre-Approved

How do you avoid difficulties that may slow down both approvals and closings? It is nearly impossible to list every issue, but maybe this list of 10 issues will help you identify some areas for concentrated effort.

10. Unrealistic expectations about what the home purchasers can afford. If there is a question about whether or not you may qualify, it should be strongly suggested you take advantage of a borrowing power estimate or credit pre-approval program.

9. Inadequate preparation by borrower prior to application. Real estate professionals and loan officers can work together to prepare borrowers. The more information the borrower has available at application, the more complete the loan officer's analysis can be.

8. Recognizing that borrowers may need loan programs explained. Industry jargon about an index, margin, T-bills and other terminology is familiar to real estate and mortgage professionals. But they have to remember not everyone has an in-depth understanding of the potential impact on loan terms.

7. Self-employed borrowers may not realize that they are "self employed". Consequently, you need to be aware that ownership of 25% or more in a company or commissioned income means different documentation requirements. Communicating this could mean that the issue is resolved before the loan comes to underwriting.

Ten Reasons Loans Fall Through