Once your loan officer has your application and verified the data, she submits the package for Fannie Mae or Freddie Mac approval. Most likely you’ll get a phone call within hours with an approval, a ‘‘no,’’ or a ‘‘let’s talk about it.’’ This fast turnaround means that within a day or two you can know if your loan is approved so you can start making plans.
Another advantage of the automated system is once you have approval, your loan officer can shop the loan to different investors to get you the best deal.
The key to making the system work for you is having the best credit score you can and presenting a stable employment history. If your income to debt ratios are a little high, the chances are you’ll still get an approval.
If, after reading this chapter, you get the feeling that the mortgage lending system is biased toward good credit scores, you’re right. Letting your credit score dip can cost you big time.
Another advantage of the automated system is once you have approval, your loan officer can shop the loan to different investors to get you the best deal.
The key to making the system work for you is having the best credit score you can and presenting a stable employment history. If your income to debt ratios are a little high, the chances are you’ll still get an approval.
If, after reading this chapter, you get the feeling that the mortgage lending system is biased toward good credit scores, you’re right. Letting your credit score dip can cost you big time.
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