Pre-approval Guide (1) - Flipbook - Page 8
Frequently Asked Queions:
Pre-Approval, Payment & Cash Out of Pocket
How will I know which loan program is best for me?
After you submit all required documentation, I will review everything to identify the
programs you qualify for. From there, I'll refine the selection to find the best and most
cost-effective option for you. You don't have to stress about choosing the right one;
that’s my responsibility! I will also provide you with information about all the available
options and guide you toward the best fit for your situation.
Will you issue my preapproval for the amount I apply for, or will you tell me
the maximum amount I can qualify for?
I will analyze the numbers to determine the highest estimated purchase price and loan
amount you can qualify for, based on your income, assets, and credit. Often, you might
qualify for more than you're comfortable spending, but qualifying for a higher amount
doesn't mean you should spend it.
How long is my pre-approval good for?
Pre-approvals are valid for 120 days (4 months) until your credit report expires. If you
haven’t located the right home within those 4 months, it’s very easy to re-issue your
preapproval for another 4 months. We will update your credit report, and gather
updated documents such as paystubs & bank statements.
What will my cash out of pocket include?
Generally, your cash out of pocket will include 3 buckets of money:
1) Down payment which is a percentage of your purchase price.
2) Closing costs which encompass all 3rd party fees such as appraisal, title work &
county recording fees.
3) Pre-paids which consist of property taxes, homeowner’s insurance, and pre-paid
interest.
What will my monthly payment include?
Principal, interest, property taxes & homeowner’s insurance. If your property has HOA
(homeowner’s association) dues, that is typically paid for outside of your mortgage.
