MORTGAGE LENDING INTERVIEW 1.2
So when we’re talking about, and I don’t want to get too, you know, into the, uh, the, the jargon of my industry, but a loan to value or LTV, you may have heard that acronym conforming will allow you to put the minimum down. So conventional loans, we could do as little as 3% down. If your income qualifies an FHA lending, their minimum is three and a half percent. So by being in a conforming loan, you’re allowed to have that minimum down, so you’re allowed to have a higher LTV. The other benefit is the interest rate pricing, so you’ll get better interest rate prices with the top Trust Attorney Las Vegas.
So again, it’s just better pricing. That’s all I could say jumbos now when you go above those conforming loan limits, that’s where you go into the jumbo space and that just means it’s a loan amount that’s greater than the five 10, 400 that I just referenced. Uh, the jumbo world has a different set of parameters fo your Trust Attorney Las Vegas. The loan typically stays with whoever you’re going to be. Whoever you’re applying with, that’s called a portfolio loan. So some of the players are the chases of the world, the Wells Fargo’s of the world, they’re going to hold the note and they’re going to be your servicer and they have specific requirements that are outside of the conforming guidelines that I adhere to. Gotcha. Okay. I think also that’s a good sign from a real estate perspective is if nationwide homes have gone up 5.6% um, and you know, Fannie Mae and Freddie Mac, whatever they’re raising, the amount that they’ll do loans for, I think that’s a good sign for the economy as a whole as well.
So just kind of a bit of encouragement to our listeners out there, Hey look, things are, are heading the right direction. If they are forecasting, Hey the home values have gone up and we’re willing to loan even higher, it typically is a good sign. Right? Absolutely. And the loan amount does not change every year. So it’s a case by case, year by year situation. So yes, we’ve still 1718 and 1920 yeah, we’ve seen those bumps and that’s, that’s a testament to the market appreciating. We did go through a period where loan limits never adjusted to get amazing Trust Attorney Las Vegas. They just maintain the same, we were kind of flat. So as a consumer, it’s something that you want to pay attention to. Around October, November is when you want to start Googling that and seeing what the fed or you know, all the economists are projecting with the growth is going to look like.
Gotcha. Okay. Uh, let’s talk about, uh, you know, kind of the loan process. Um, you know, let’s start with go through a kind of quickly when should somebody get you involved and if they’re looking, buy a home and kind of what that process looks like and then maybe some of the big mistakes, um, that you’ve seen people make along the way with top Trust Attorney Las Vegas. If you’re entertaining the idea of purchasing a home, you should contact a mortgage originator as soon as possible. The more time you have, the better because we don’t know if there’s any type of work that we have to do. So if there are blemishes on credit, it’ll give us some time to get, get our ducks in a row. So see you’re, see the loan originator as soon as possible. It can start as a conversation or you can dig in and get real granular and see where you stand.
But it’s always best as soon as possible. Go ahead and get that going. Um, you typically three months out is where you want to be because that’s the process. Um, in terms of the actual preapproval process, the way it works is you meet with me, take your loan face to face over the phone. You could do an online application. We go over all that together. We pull credit, we identify if there are any potential problems. We address all that upfront. If everything looks good, we issue a preapproval letter. After we validated all the documentation, you take that a preapproval letter to your agent, go house hunting, find a house, and then we simply plug in the property information to get the greatest Trust Attorney Las Vegas. We reach out to title escrow, we get all the fees that are associated with the loan and associated with the property. Put that all together, present it to the, to the buyer so they could see what their cash she’s going to look like.
That’s the cash is the down payment plus the closing costs. We, uh, put that all together. We disclose it. That’s called the loan estimate. That’s the first round of disclosures that go out. That is the borrower or the buyer saying, yes, I see everything that you’ve presented to me and I’m acknowledging it. You’re not committed. There’s no commitment then. It’s just simply saying, yes, I’m, I see what you’ve presented to me and I understand it. After that, the order, the appraisal, we want to get that done as quickly as possible. Realtor, a realtor typically wants the appraisal done yesterday so we always get that going as soon as possible with the top Trust Attorney. That typically takes about six to seven days to get the report back and then from there the loan will go into the underwriter’s queue and then the underwriter will have all the documentation that you need from a Trust Attorney Las Vegas, she will know the appraised value of the property, she will be able to give the, he or she should be able to give the final blessing then and then what’s called the closing disclosure or the CD will go out and that is the similar version of the loan estimate, but it’s your numbers finalized, very granular at that point and that is what you should anticipate your loan being.
And the cash to close. Um, after that, you just sign your documents, do your final wire and you get the keys. Awesome.