Getting Approval

Lenders for the most part rely on three factors during the approval process. These are credit score, income and your current level of debt.

These three areas of your financial makeup determine the rate and types of loan programs available to you. Each lender has their own particular criteria as to how they view potential borrowers however the three factors mentioned above are by far the most important.

Of these three, the credit score is generally the most crucial. The credit score offers a lender insight as to how you have handled debt in the past.

It is important to know that a low or lower credit score does not preclude you from applying and/or receiving loan approval. Lenders conditions of approval differ widely. Some lenders may concentrate on home loans to higher credit score individuals whereas some others may offer programs to borrowers with relatively low scores. Also, past foreclosure or bankruptcy does not necessarily preclude one from securing a home mortgage provided certain conditions are met.

Once your loan originator submits your application to the lender, generally you would expect approval within 48 to 72 hours. This of course varies by lender.

The overall process is not as complicated as one might believe. What is important is that your loan consultant takes the time to determine your goals and locate the program to let you achieve those goals. Stay away from the cookie cutter approach and the "hot rate" of the day. The great sounding rate you hear on the radio with approval given over the phone in 5 minutes might not be the best way to make your largest financial decision. Insist that your loan agent devotes the time necessary to find the program that adds to your wealth over time. You owe it to yourself to approach your home financing search the same way you would for any other long term financial decision.