Commonly to finance or refinance a home you must pre-qualify with a lender of your choice. Initially I suggest to sign up for Credit Sesame or Credit Karma to see all your creditors. This is free service and gives you a head start to see what is out there under your social security number! The start of the process consist of sending the loan processor the last two years of filed tax returns and legit proof of any other income. Not to mention informing lender of any debt that you incurred. In-turn processor will in get your consent to run a credit report. Promptly answers all questions and send any additional documentation requested by the processor. Upon receiving credit report, loan processor reviews thoroughly. Many cases other debt shows up that has not been reported by the buyer or credit fraud accounts show up.
At this point you will receive a conditional pre-approval. From here on all other open conditions need to be met prior sending to underwriter. This file has to be investigated by the processor before file is sent to underwriter. All disputed accounts must be settled/cured prior buying a home and sending to underwriter. Many underwriters will not approve loans with open disputes. Underwriters are all different and can ask for many different documentation. Do not take this personal and can feel somewhat uncomfortable to a degree and irritating from hands on experience. However loan officers can be held accountable if a loan folds within six months after closing. Once underwriter signs off you are eligible for a which sounds better a pre-approval.
A commitment letter from the lender comes about a week or less prior to closing. You have the option of shopping for the lender that has the best terms based on your credit score. Please note the higher your credit score is the better interest rate you will receive. Any questions you ma have feel free to call me today at 407 479-8583.