Friday, May 6, 2011

The Ever-Elusive Preapproval

The preapproval process has been much more fun then we expected.  And yes, even through the blogosphere you may have been able to detect the sarcasm there.  You can go to and read all about what your mortgage professional will need to get you preapproved.  For us, however, this list was entirely incomplete.  It turns out that since the recession with new concerns and new laws coming into place the loan process has become very complicated and thorough.  Underwriters want to make sure that they have completely filled every hole and answered every question mark before they will authorize the preapproval.  So our loan consultant did ask for pretty much everything on the fearless home buyer list initially, but once he reviewed them all he came back to ask for about a hundred more things.  Both of our employments had to be officially verified, rather than just verbally; Matt's work and school history had to be explained fully because he has been at his job for less than a year; Caroline's income had to be explained because it differed from 2009 to 2010; every little inconsistency in our finances had to be explained.  For example, we a gift in February that stood out as a deposit that was larger than normal.  We had to explain the gift, obtain copies of the check and as signed letter stating that it was a gift and that we were not going to be expected to repay any part of it.  In short there have been a lot of hoops to jump through!

Even now we are waiting for the underwriters to review our file and determine what additional information they need.  The good news is, our loan consultant has said that he is confident that once we jump all necessary hurdles we will eventually get the preapproval, and that he is willing to issue the approval at any time.  This means we can get really serious with our house shopping!  We're meeting with our real estate agent tomorrow to see some more houses and talk about what we've seen so far, so more updates to come!

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