Mortgage Matters: Fast Loan Approvals Now Common
As the mortgage industry prepares for 2005, expanded technology is creating loan approvals in a matter of hours, not days.
Mortgage companies once boasted 24-hour approvals but today an even shorter approval of several hours is possible for buyers and homeowners who are refinancing.
The benefits of fast approvals are outstanding. A fast approval gives the buyer instant credibility in negotiating a purchase. The buyer's Realtor can negotiate confidently toward a successful purchase agreement with the seller with a completed loan approval.
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Fast loan approvals can only be accomplished with the aid of a knowledgeable mortgage company. Most mortgage companies can now open the Website at Freddie Mac (the Federal Home Loan Mortgage Corp.) or Fannie Mae (Federal National Mortgage Association) and directly input a buyer's loan information.
These direct programs go under names such as DO, DU and LP, which stand for "Direct Originator," "Direct Underwriter" and "Loan Prospector." By return e-mail your mortgage company receives an approval and a list of necessary items that must be verified prior to closing. Even though requirements may exist on the approval letter buyers, sellers and Realtors know the loan will be available at closing.
The accuracy of the loan application is paramount for a fast approval with Fannie Mae or Freddie Mac. The buyer must cooperate with the mortgage company in every detail of the application by presenting accurate pay stubs or tax returns to verify income and bank statements to verify assets. Without accurate data the loan approval would not be valid and would need to be submitted again.
Jumbo loans (those loans in excess of the $333,700 Fannie Mae and Freddie Mac loan limit) are also now approved through automation. Jumbo lenders either use the standard DO, DU or LP approvals or they have a similar approval system uniquely set up for jumbo loans.
With fast loan approvals Realtors and buyers will find that waiting on a survey, title commitment and an appraisal will determine the speed of the buyer's closing. Technologically adept mortgage companies find that with accurate buyer's income and asset data closing can occur within one and a half to two weeks after the purchase agreement is signed.
Fast approvals are now coupled with fast closings as lenders e- mail closing documentation directly to the buyer's title company for closing. No more lost overnight deliveries!
Jim Gay was a real-estate broker for 20 years and has been a financial consultant to Fortune 500 companies. He is president of American Mortgage Team (988-4422) in Santa Fe.
The Santa Fe New Mexican - 2004-12-05
For mortgage quotes visit MortgageSort.com.
Mortgage companies once boasted 24-hour approvals but today an even shorter approval of several hours is possible for buyers and homeowners who are refinancing.
The benefits of fast approvals are outstanding. A fast approval gives the buyer instant credibility in negotiating a purchase. The buyer's Realtor can negotiate confidently toward a successful purchase agreement with the seller with a completed loan approval.
Site Sponsor
Fast loan approvals can only be accomplished with the aid of a knowledgeable mortgage company. Most mortgage companies can now open the Website at Freddie Mac (the Federal Home Loan Mortgage Corp.) or Fannie Mae (Federal National Mortgage Association) and directly input a buyer's loan information.
These direct programs go under names such as DO, DU and LP, which stand for "Direct Originator," "Direct Underwriter" and "Loan Prospector." By return e-mail your mortgage company receives an approval and a list of necessary items that must be verified prior to closing. Even though requirements may exist on the approval letter buyers, sellers and Realtors know the loan will be available at closing.
The accuracy of the loan application is paramount for a fast approval with Fannie Mae or Freddie Mac. The buyer must cooperate with the mortgage company in every detail of the application by presenting accurate pay stubs or tax returns to verify income and bank statements to verify assets. Without accurate data the loan approval would not be valid and would need to be submitted again.
Jumbo loans (those loans in excess of the $333,700 Fannie Mae and Freddie Mac loan limit) are also now approved through automation. Jumbo lenders either use the standard DO, DU or LP approvals or they have a similar approval system uniquely set up for jumbo loans.
With fast loan approvals Realtors and buyers will find that waiting on a survey, title commitment and an appraisal will determine the speed of the buyer's closing. Technologically adept mortgage companies find that with accurate buyer's income and asset data closing can occur within one and a half to two weeks after the purchase agreement is signed.
Fast approvals are now coupled with fast closings as lenders e- mail closing documentation directly to the buyer's title company for closing. No more lost overnight deliveries!
Jim Gay was a real-estate broker for 20 years and has been a financial consultant to Fortune 500 companies. He is president of American Mortgage Team (988-4422) in Santa Fe.
The Santa Fe New Mexican - 2004-12-05
For mortgage quotes visit MortgageSort.com.
posted by Kirby P at 11:55 AM
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