VA home loan pre approval

Prequalification helps lenders achieve three main goals:

  • Assess a borrower’s service and credit eligibility
  • Estimate the loan amount a borrower may obtain
  • Begin gathering documentation needed for preapproval and loan underwriting.
  • A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but a pre-approval is much more valuable because this means the lender has actually checked your credit and verified your documentation to approve a specific loan amount.

    How long does it take to get preapproved for a VA home loan?

    Generally, you should allow 30-45 days for your closing from the time a complete file has been submitted to Processing.
    With a VA mortgage, the VA requires that their appraisers be given 10 days to complete the report.

    Getting Pre-Approved for a VA Home Loan.

    With this program qualified veterans can get a mortgage loan through a VA-approved lender. Some qualified veterans can obtain this loan with no down payment, low closing costs, fewer fees or a lower monthly payment than if they went to a traditional lender.

    How do I qualify for a VA loan with bad credit?

    In most areas, the FICO Credit Score must be a least 620. However, there are VA loans for some borrowers who have no credit score or even a score less than 620. If you are without credit, qualification is determined based on past payment history of rent, car insurance and other regular monthly expenses.

    How do I use my VA home loan?

    Eligibility Requirements for VA Home Loans.
    Get a Certificate of Eligibility.
    Find a Home and Sign a Purchase Agreement.
    Apply for your VA Loan.
    Loan Processing.
    Then the Closing.

    The Veterans Administration does not have a minimum required credit score for a VA loan.

    However, lenders set their limits on credit scores. Many lenders will require a 620 credit score for VA, but some are able to go down to 580.

    You do not have to pay mortgage insurance with VA loans either.

    Buying a home is a multi-step process, and everyone’s journey is different. Most VA loans close in 40 to 50 days, which is standard for the mortgage industry regardless of the type of financing.

    Contact us today for your VA Loan and VA home loan pre approval.

    The Home Appraisal

    The dictionary meaning of appraisal is “an expert estimate of the value of something.”

    A home appraisal is the current fair market value of a property estimated by a certified appraiser. Mortgage lenders use home appraisals to determine the loan-to-value amount.

    Lenders will not issue mortgage loans higher than the appraised value.

    But a home appraisal isn’t just a monetary figure on a piece of paper. It is a detailed document that describes what makes a house valuable as well as the value of the house relative to other properties in the neighborhood.

    Home Appraisal Cost According to recent data, the average home appraisal cost for a residential property is $450.

    The cost isn’t uniform, but it is included amongst closing costs. Thus, the homebuyer foots the bill eventually. Expect to pay between $350 – $600 for an appraisal on a home. Factors that affect the appraisal cost Home square footage Type of Property Property location Land square footage Extensive damage or repairs Company doing the home appraisal.

    Importance of Home Appraisals Lenders want to be sure that they aren’t offering mortgage solely based on a seller’s subjective opinion. An independent assessment is more objective and acceptable. On one hand, a home appraisal protects you and your lender from paying too much for a home. And on the other hand, it protects the bank from getting stuck with dead weight whose value doesn’t match their investment. The URAR, or Uniform Residential

    If the appraised value is considerably less than the purchase price this creates be big problem. A lender will not process a loan for an amount that exceeds the appraised value of the home.

    Lenders treat an appraiser report as the final word on the value of a home.

    If that value is less than the amount in your purchase mortgage application (called an under-or short appraisal), the lender can’t process the loan. You would either have to cover the difference (an unforeseen glitch you may not have prepared for), or impress on the seller to reduce the price.

    Sellers don’t have many other options because the appraisal amount will be relatively the same with any appraiser, and buyers will not be able to obtain loans for more than the appraised value of the home. There are only three things you can do when the appraisal is less than the purchase price You and the seller would have to agree to a purchase price equal to the appraised value Pay an extra down payment to make up the difference Cancel the contract.

    Tips for sellers to increase the home appraisal value Repair:

    Paint interior walls
    Trim bushes and mow lawn
    Touch up exterior paint
    Replace broken or outdated fixtures, lights, fans, and door handles
    Leave the blinds open to allow more natural light in
    Remove clutter
    Paint colored walls a neutral color
    Clean the home from top to bottom
    Polish floors and steam clean carpets

    The home appraisal process is conducted by an independent professional/expert, which reinforces the validity of the estimate in the appraisal report.

    Inspection Usually walk-in (interior appraisal), although a drive-by (exterior appraisal) is an available option.

    Mortgage lenders require both types, especially interior appraisal.

    The objective of an inspection is for the licensed appraiser to get a first-hand feel of the house, noting its size, function, condition, and quality.

    Comparable Refers to properties very similar to the appraised home that the appraiser check to come up with a fair market value of the appraised home.

    Final Appraisal Report Compilation of relevant data and house estimate.

    How Long is a Home Appraisal Good for?

    Home appraisals are only valid for a set period, regardless of loan type. However, this set period aptly called, “term of validity,” differs between loan types. The term of validity varies wildly. It could be as low as 60 days (2 months) or as high as 180 days (6 months).

    For example, while FHA appraisals are good for 120 days (4 months), VA appraisals are valid for 180 days (6 months).

    These limits aren’t set in stone. When market conditions fluctuate rapidly, validity typically drops. And there are very special circumstances when the FHA allows validity of up to 240 days (8 months).

    Should you borrow from your 401(k) to purchase a home?

    Just because you can borrow from your 401(k) to purchase a home doesn’t mean you should.

    Here’s why:

    • You may think you need to borrow from your 401(k) to have enough for a large down payment. However, you don’t actually need a large down payment to purchase a home.
    • If you borrow from your 401(k) and then leave the company for any reason, you will have just 60 days to repay the entire remaining balance.

    Bank Statement Programs

    Elite Residential Lending offers Bank Statement programs which are ideal for self-employed:

    Here are some of the details:

    • Jumbo Loans now up to 85% LTV to $3 million loan and up to 90% LTV to $2.5 million loan with NO MI!
    • Rates starting in the 4’s and the credit score requirement reduced to a 600
    • Cash out refinances now up to 85% LTV
    • Bankruptcy or Housing Event ONLY 2 year seasoning
    • Loan amount starting at $150,000 on Owner Occupied, 2nd Home, or Investment

    Entering retirement broke and bankrupt

    The the U.S. population is aging, the spike in older Americans entering bankruptcy far exceeds the demographic shift, according to new research from the Consumer Bankruptcy Project, which analyzed data from bankruptcy court records and written questionnaires.

    About 100,000 of the 800,000 annual bankruptcy filings are from households headed by seniors, or about 12.2 percent of all filings.

    The culprit appears to be cutbacks in the social safety net…

    The full retirement age for Social Security, once 65, is inching up every year. And retirees are now paying 20 percent of their income on health care expenses even though they are covered by Medicare, compared with 12 percent for previous generations.

    To find out more go to: cbsnews article, for the news article on the coming storm entering retirement broke and bankrupt.

    Elite Commercial Lending

    Elite Commercial Lending for all your Commercial Loans and lines of credit.

    Elite Commercial Lending a commercial mortgage broker that primarily works with businesses from all parts of the county. We are based in Chicago, Illinois and we have multiple loan sources. Our customers range from real estate developers, investors and property owners.

    Like most commercial real estate financing brokers, Elite Commercial Lending can broker loans for the purchase or refinance of properties from office space to industrial parks, although it seems to have a stronger focus on residences.

    In addition to traditional property purchase loans, we can broker refinancing, mezzanine or bridge loans, construction loans and renovations. We also handles equity financing.