The entire process from application to closing generally takes one to five weeks, depending on the type of mortgage being requested and the complexity of the borrower's circumstances. Finally, it gives the homebuyer a competitive advantage when submitting a bid for a home if the seller knows the purchaser will be able to obtain financing. Mortgage Network does not charge for prequalification. To prequalify, the homebuyer will be asked to provide information regarding household income, total indebtedness, employment history, funds available for closing, and credit history. Mortgage Network will attempt to answer any questions of the homebuyer, and provide details of the various programs available and their related cost.
Some circumstances merit the homebuyer taking an additional step toward loan approval.
Such may be the case when a buyer has a limited time in which to purchase and close on a property due to relocation, expiration of an existing apartment lease, or the imminent sale and closing of a current residence. Another reason for preapproval might be concern over the approvability of a loan due to credit history, employment stability, or other factors. During the preapproval process the lender completes the loan application, verifies the information provided by the borrower, obtains a credit report, and submits the loan to an underwriter for approval. A complete loan approval is issued for a maximum loan amount subject only to satisfactory appraisal and title review of the property to be purchased. The applicant will typically be asked to provide a two year history of employment and residences, including tax returns, paystubs, mortgage holder or landlord information, bank references and statements, creditor information, and proof of other assets, such as 401K plans, etc.