Frequently Asked Questions
Q: What is the difference between Pre-Qualification and Pre-Approval?
To get Pre-Qualified, you will need to provide the lender with some financial information such as your income and the amount of savings and investments you have. The lender will use this information to estimate how much money we may be able to lend you and therefore the price range of homes you can start looking at. To get Pre-Qualified the lender will request a formal credit check. The estimate of the loan amount provided to you does not guarantee you will ultimately be approved for that amount.
To get Pre-Approved, however, you will need to provide the lender with financial documents including W-2 statements, paycheck stubs and bank account statements. The lender will use these documents to verify your financial status and request a formal credit check. A Pre-Approval will help you when shopping for homes because sellers will have more confidence that you will be able to obtain a loan to purchase their house.
For both prequalification and preapproval, final approval will also depend on the property purchased. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: How long will it take to get Pre-Qualified?
Prequalification can be a very quick process. It can take as little as 5 minutes. The Lender will ask for your income, assets, employment and property information and obtain a credit report. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: Should I get Pre-Qualified or Pre-Approved before finding a home?
You don't have to apply for a loan before looking for a property. It is, however, a good idea to get Pre-Qualified or Pre-Approved before you find a home; many real estate agents will take your offer more seriously if you've been Pre-Approved. Also by going through this process, you'll have a better idea of the price range of homes that you might be able to afford. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: How long does the mortgage process take?
The time needed to complete the mortgage process varies by customer and lender because it includes gathering information from a customer, verifying that information and processing the actual loan. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What documents do I need to apply for a mortgage?
Q: What is an LE (Loan Estimate)?
A Loan Estimate is a written estimate of costs the borrower will have to pay at closing, provided by a lender shortly after your apply for your loan. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What is LTV (loan-to-value)?
To qualify for a loan, lenders will look at your loan-to-value (LTV) ratio. LTV is a ratio, expressed as a percentage, of the requested amount of your home loan divided by the purchase price or appraised value of your home. For example, if the home you are purchasing or refinancing has been appraised at $200,000 and you are requesting a loan for $100,000, the LTV is 50% ($100,000 / $200,000). Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: Why is my credit score important?
Your credit score is a way of measuring how likely you are to pay (or not pay) your bills. It's just one of the key factors that the lender looks at when deciding if we will approve your loan application and for what amount and at what interest rate. The higher your credit score, the better your chances of approval at a favorable interest rate. You should discuss your individual credit situation with your mortgage banker. In addition, you can obtain a free copy of your credit report once a year from each of the three major credit reporting agencies - Equifax, Experian, and TransUnion - by visiting www.annualcreditreport.com. You may also obtain a credit score from the agency for a small fee at any time, and your lender will provide your score when you apply for your loan. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: Will my credit history prevent me from getting a mortgage?
A Mortgage Banker can explain how your credit score and credit history affect your ability to get credit and discuss available financing options. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What does it mean to lock my rate?
A rate lock is when a lender guarantees an interest rate for a set period of time, usually between loan application and closing. During this period, typically 15-90 days, you're protected against rate fluctuations. Lenders have to pay to "reserve" your rate, so the longer your lock-in period, the higher your cost. A Mortgage Banker can answer your additional questions about rate locks. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.