At most banks the loans offered originate from that specific lender, so the rates and loan programs are limited to only what that particular bank has to offer. Mortgage brokers work with dozens of lenders, not as employees, but as freelance agents, leading to the access of a wide variety of loan programs. Because of this, mortgage brokers can usually find more competitive rates than a particular bank can offer or a lender who will make loans that a particular bank refuses.

If all information requested by the lender (i.e. Income and asset verification, down payment verification and property details) are given to the broker in a timely matter than the transaction can be completed in as little as 2 weeks. However it’s recommended to expect around 4 weeks for completion.

To lock an interest rate means that for a specified amount of time you as the borrower have a commitment from a lender to a specified interest rate regardless of changing market conditions during that same time period.  It is also an option to “float” your interest rate if the situation deems this more appropriate.  Floating means simply a borrower electing to have interest rates move up and down according to market conditions.  An example of situation where floating the rate might be a better choice for someone is a client who is shopping for a home purchase but will not be able to move forward with the purchase transaction until their current home sells.

An interest rate can be locked in at any point after a loan officer at Resident Lending Group has gathered some basic information about a borrower, including specifically a social security number and a credit profile.  While many lenders require a property address to lock a loan, this is not the case with every lender.  So, a rate can be locked during the pre-approval stage of the loan application process if this suits the best interest of our client. A borrower’s credit score plays an increasingly significant factor in what rate they may qualify for.

Completing a loan application can happen in many ways; an appointment can be made to sit with a loan officer at Resident Lending Group, a loan officer can take the application over the phone, or a copy of the application can be mailed/emailed to you to be completed and returned.  It is ideal if the application is completed either in person or over the phone so that the necessary dialogue begins to ensure good communication and understanding of the borrower’s needs.

Being pre-approved means that a lender has initially agreed to extend a loan of a certain maximum amount to you based on credit, income and assets.  A borrower is pre-approved for a loan amount and payment.  Being pre-approved for a mortgage loan shows the seller and real estate agents that you a serious and qualified buyer and you may have a better chance of getting your offer accepted. Pre-approval is a wise step to take before shopping for a home.

Being pre-qualified means that the borrower has spoken to a loan officer, and discussed their financial situation. The buyer has informed the loan officer regarding income, debts, assets, savings, and liabilities, however, the buyer has not completed an application or provided the loan officer with any documentation regarding their financial situation.

 

With an increase reliance on technology in the mortgage industry, the pre-approval process can take as little as a few minutes.  Once an application is completed, the loan officer can pull credit, upload all the information to a lender and have an approval back in just a couple of minutes.