What Happens After You Get Pre-Approved for a Mortgage?

If you are going to buy a home, mortgage pre-approval should happen early in the process.

You will need to provide financial credentials to a mortgage lender, including details about your credit and income. The information you provide will be reviewed and you should be pre-approved for a loan up to a set amount, assuming you qualify.

But what happens after you are pre-approved? Here's what you can expect.

You'll be able to use your pre-approval letter to go see homes

When you're looking for houses, some sellers will require proof that you have been pre-approved for a loan before they will allow you to visit their home for a showing. A lender will give you a pre-approval letter after you go through the process to enable you to visit any house you may be interested in taking a look at.

You can make an offer and provide proof of pre-approval

When you have found a home you are interested in, you will need to submit an offer. Most sellers require proof of pre-approval before they will accept it. That's because they don't want to take their home off the market for someone who doesn't have the funds to buy it. You'll include a copy of your pre-approval letter with your submitted offer.

When your offer is accepted, you'll let your mortgage lender know and an appraisal will be scheduled

After you have an offer accepted, you'll want to reach out to your mortgage lender ASAP. You'll need to go through the process of getting your home appraised. Lenders generally require an appraisal to ensure the home is valued highly enough to serve as collateral for the loan.

For example, say you were buying a home for $400,000 with a 10% down payment of $40,000. Lenders want to make sure the home is actually valued at $400,000 because they are generally only willing to make a loan up to a certain percentage of the home's value (such as 90% or 97%).

If the house appraises for less than you are offering -- say, for $350,000 -- you would have to increase your down payment in order to remain at the 90% loan-to-value ratio. Or you would need to ask the sellers to reduce their price based on the low appraisal, which doesn't always work.

You'll usually also go through some other steps during this stage. For example, you may want to have a home inspection and your lender may require a survey to make sure there aren't any issues with the land boundaries.

Your loan will go to underwriting

If your appraisal and other pre-conditions of the loan, like a survey, all go well, then your loan will move forward to underwriting. Underwriters assess risk, so they will look at all the details of your home loan and make sure all is well.

Ideally, you will not have made any damaging financial moves between pre-approval and underwriting, like opening a bunch of new credit cards or taking on more debt of any kind. And you hopefully haven't changed jobs either, as that can make a lender nervous.

If everything looks good both with your financial credentials and the home, you'll get final approval.

You can close on your loan and home if all goes well

Finally, your closing will be scheduled. You'll pay all your closing costs, such as your mortgage origination fee and transfer fees, and your lender will release the funds to the sellers. You'll become the official new owner and can begin the process of enjoying your new home -- and paying your new mortgage loan off.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Bài đăng phổ biến từ blog này

1968 Pontiac Firebird

1968 Pontiac Firebird photos collection, awesome Pontiac Firebird pictures The Pontiac Firebird is an American automobile that was built by Pontiac from the 1967 to the 2002 model years. The Firebird was introduced 23 February 1967, the same model year as the automaker's platform-sharing model, the Chevrolet Camaro. This coincided with the release of the 1967 Mercury Cougar, which shared its platform with another pony car, the Ford Mustang. The name "Firebird" was also previously used by Pontiac's parent company General Motors for the General Motors Firebird 1950s and early-1960s concept cars. First generation Firebirds (1967–1969) The first generation Firebirds had a characteristic Coke bottle styling. Unlike its cousin the Chevrolet Camaro, the Firebird's bumpers were integrated into the design of the front end. The Firebird's rear "slit" taillights were inspired by the Pontiac GTO. Both a two-door hardtop and a convertible were offered throug...

1967 Pontiac GTO

The Pontiac GTO is an American muscle car that was built by Pontiac in generations from 1964 to 1974 model years, and by GM's subsidiary Holden in Australia from 2004 to 2006. 1967 Pontiac GTO 1969 Pontiac GTO the "Judge" The first three generations of the Pontiac GTO was a muscle car of the 1960s and 1970s era.The Pontiac GTO was known as the judge of all muscle cars. the Pontiac GTO is considered by some to have started the trend with all four domestic automakers offering a variety of competing models. 1970 Pontiac GTO "Judge" For the 1964 and 1965 model years, the GTO was an optional package on the intermediate-sized Pontiac Tempest. The GTO became its own model from 1966 to 1971. It became an option package again for the 1972 and 1973 intermediate Le Mans. For 1974, the GTO option package was offered on the compact-sized Ventura. 1971 Pontiac GTO The GTO was selected Motor Trend Car of the Year in 1968.It was the only muscle car in the world which containe...

Greatest muscle cars of all time

Because it is a genre that enthusiasts are passionate about, you are bound to generate some criticism when compiling a list of the 7 greatest muscle cars of all time. However, we stuck its neck out to do just that. Some enthusiasts trace the history of muscle cars to the 1949 Oldsmobile Rocket 88. But the heyday of this genre ran from 1965 to 1970 before collapsing under the weight of higher gas prices, more stringent exhaust emissions regulations and soaring insurance costs. What is a muscle car? There isn't a settled definition, but most experts agree it's a smaller, 2-door car powered by a high-displacement engine typically found in a larger, full-size sedan. Some argue that pony cars, such as the Ford Mustang and Chevrolet Camaro, aren't muscle cars at all, but for this list, we chose not to make that distinction. Manufacturers engineered muscle cars for straight-line speed, inspiring more than an occasional Saturday night drag race between traffic lights. Neither built...

100 cụm động từ tiếng Anh phổ biến nhất kèm ví dụ minh họa

Trong quá trình học tiếng Anh, cụm động từ (phrasal verbs) là một trong những yếu tố ngữ pháp khiến nhiều người học cảm thấy khó khăn. Tuy nhiên, việc sử dụng thành thạo các cụm động từ không chỉ giúp bạn giao tiếp tự nhiên hơn mà còn thể hiện sự hiểu biết sâu sắc về ngôn ngữ này. Bài viết này sẽ giới thiệu 100 cụm động từ thông dụng trong tiếng Anh, giúp bạn nắm bắt được cách sử dụng chúng trong các tình huống giao tiếp hàng ngày. Hãy cùng khám phá và mở rộng vốn từ vựng của mình qua những cụm động từ này nhé! Add up - Cộng lại, tính tổng Ví dụ: The numbers don’t add up; there must be a mistake somewhere. Ask out - Mời ai đó đi chơi Ví dụ: He finally asked her out to dinner after months of hesitation. Back up - Hỗ trợ, sao lưu Ví dụ: Can you back me up during the meeting if I forget something? Blow up - Nổ tung, phóng đại Ví dụ: The balloon blew up when he filled it with too much air. Break down - Hỏng hóc, suy sụp Ví dụ: Our car broke down on the way to the airport...

Netflix gets user reaction when blocking account sharing

Netflix to Make Changes for People Who are Sharing the Same Accounts A lot of users decided to cancel the service after Netflix no longer allowed account sharing in more than 100 countries. Every three months, Brandy Andersen loads her clothes, kitchen supplies, fans, and a small TV into her car to travel to a new city. Her job as an emergency nurse makes her travel frequently between New York, Boston and Washington, as well as remote parts of northern California. Meanwhile, her Netflix account is registered at her home address in the state of Georgia, thousands of kilometers away. Andersen is one of many longtime Netflix customers who are angered by the account sharing block, which began in place in the U.S. last week. After years of encouraging account sharing with each other, Netflix is asking users to set a location, like a subscriber's home address. When logging into an account at this location, anyone can use the account. If the user enters the account from another location, ...

Cortana will stop working on Windows

Hi! I'm Cortana The eight-year-old virtual assistant Cortana on Windows is about to stop working, after Microsoft launched a series of new AI applications. On its support page, Microsoft says it is "making changes to Windows that may affect Cortana users." By the end of 2023, this virtual assistant will no longer appear on its operating system as a standalone application. Cortana first appeared on the Windows Phone mobile operating system to compete with Google Assistant or Apple Siri. Microsoft later expanded the assistant to other platforms, including Android and iOS. Since 2015, Cortana has been deeply integrated into Windows 10 and the Microsoft product ecosystem, supporting users in tasks such as scheduling, tasks, and voice email. According to Microsoft, the change with Cortana will first affect apps in Windows. Other platforms such as Outlook mobile, Teams mobile will still use this virtual assistant. Cortana's death announcement comes after Micorosft introduce...

7 ưu điểm khi học tiếng Anh bằng AI so với cách học truyền thống

Trong thời đại công nghệ 4.0 , trí tuệ nhân tạo (AI) đã và đang cách mạng hóa nhiều lĩnh vực, bao gồm cả giáo dục. Đặc biệt, việc học tiếng Anh bằng AI mang lại nhiều ưu điểm vượt trội so với phương pháp học truyền thống , từ tính cá nhân hóa, sự linh hoạt, đến hiệu quả học tập và chi phí. Bài viết này sẽ phân tích chi tiết 7 ưu điểm nổi bật của việc sử dụng AI trong học tiếng Anh, đồng thời so sánh với các hạn chế của phương pháp truyền thống để làm rõ sự khác biệt. 1. Cá nhân hóa lộ trình học tập Một trong những ưu điểm lớn nhất của việc học tiếng Anh bằng AI là khả năng cá nhân hóa. Các nền tảng AI sử dụng thuật toán phân tích dữ liệu để đánh giá trình độ, thói quen học tập, và điểm yếu của từng người học. Dựa trên thông tin này, AI thiết kế lộ trình học tập phù hợp, tập trung vào những kỹ năng mà người học cần cải thiện nhất. Ví dụ, nếu bạn yếu về phát âm , AI sẽ ưu tiên các bài tập luyện phát âm hoặc hội thoại. Trong khi đó, phương pháp học truyền thống thường áp dụn...

WikiHowBlog

Tìm kiếm Blog này