Mortgage Loan Approval?

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We are in the underwriting stage of our FHA loan. We received a copy of the approved appraisal along with a letter from the Mortgage Services company stating that our loan was approved upon some contingencies. They stated items such as home owners insurance, current pay stubs at closing, and ID. The letter mentions the loan amount and loan terms. Does this mean that we are actually approved for our loan? What happens now?

Mortgage Loan Approval?

Terms of the approval is that your stated income upon application matches wirh pay stub, you also need house insurance on the property you are going to purchase.

If there is a income shortfall the loan amount may be lowered to meet the affordability issues thus more downpayment may be needed. At this stage you need to get a solicitor to act on your behalf to help you close the property.

Mortgage Loan Approval?

I can't see your documents but it sounds as if you are approved but with conditions that must be met before the lender will fund the loan. As you proceed with getting the insurance, etc., the conditions will be removed. Be certain to provide every thing that the lender has asked for as promptly as possible. Keep your eye on the close of escrow date and talk with the lender daily to see what they are waiting for.

Mortgage Loan Approval?

If your appraisal came through ok and you can produce the documents that your approval is contigent upon...you can do the high five...........

Wait till you have the keys to break out the Dom.

Mortgage Loan Approval?

But, in the long run it may be still expensive, with lower loan amounts, shorter repayment terms, and higher interest rates.

Mortgage Loan Approval?

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