Financing

We strongly encourage you to make a full written loan application with a reputable local lender very early in the home buying process. With so many programs available, it's important to find the best fit for you. That's why McEnearney Associates has partnered with Signature Mortgage Services to bring you the best financing options for your homeownership goals. Talking to a lending professional early in the process will save you time, allow you to focus on homes in your price range, and find a loan that fits your financial picture.

Seller Expectations: The seller expects your financing to be approved prior to submitting an offer. Anything less will put you at a competitive disadvantage at contract presentation time.

Pre-Approval is Different from Pre-Qualified
Pre-approval is an important first-step before you begin looking for a home, and it helps you determine how much home you can really afford. Getting pre-approved requires that the lender verify your financial information, and it serves as a commitment to lend a specified amount based on that information. This gives you significant buying power with a seller who recognizes you will be approved for a loan.

Pre-qualification is an informal discussion between borrower and lender. The lender estimates the amount that you can borrow based solely on what you tell them about your income and assets. Nothing has been verified and no commitment has been made by the lender.

Requirements for Pre-Approval
The following documents, at a minimum, will be required by the lender in order to issue a commitment or pre-approval letter.

• Written loan application
• Credit Report reviewed by lender
• Verification of Income
• Pay Stubs (usually for the last month)
• Tax Returns, if self-employed
• Verification of Assets by lender
• Bank Statements

How is Pre-approval Better?
To a seller, a lender's pre-approval letter is considerably stronger than a pre-qualification letter. Loan pre-approval is based on documented and verified information regarding your employment, your income, your liabilities, your assets and the cash you have available to close on a home purchase. If a seller knows your financing is secure, your offer is stronger. Pre-approval also gives you peace of mind as you shop for a home, knowing that you will qualify for the proper mortgage amount.

Lender's Commitment Letter
When your full loan application and documentation has been reviewed by the lender’s underwriter and approved, you will receive a commitment letter. Conditions for funding the loan after this lender commitment is made typically include:

• Appraisal
• Termite Inspection
• Survey
• Title Search

To talk to a Signature representative about pre-approval, click here.