After having a few conversations with your loan officer, you should feel pretty confident that you can qualify for a loan but do not be surprised if even more is asked of you before you find any money in your pocket.
The Pre-approval process is when the lender scrutinizes your documents to see if you qualify for a loan under certain ratios. Debt-to-Income, Loan-to-Value, Combined Loan-to-Value. It’s a great start if you fit into the parameters the lender is looking for but there are some little tricks in the trade that can help a borrower qualify who maybe should have not been, therefore the lender will do their best to look for any irregularities in a borrowers application packet. When an irregularity is spotted, the lender will ask for an explanation or further proof that the irregularity is not going to lead to the borrower defaulting on their loan.
One of the most common loan conditions in my experience is a letter of explanation for an unusually large deposit into a borrowers bank account. This is an indicator that the money in the borrower’s bank account is not actually their own which is a red flag that the borrower may not have the money to continue to pay their mortgage in the future.
Letters of explanation are also commonly asked for when verifying a credit report. Lenders will want to know why a recent line of credit was open to insure the borrower is not taking on too much debt then they can handle.
Most importantly though, loan conditions are further evidence that the borrower has the “ability-to-repay”. In the end it may feel as though everyone is working against you, in reality establishing the “ability-to-repay” is helping the industry as a whole to protect the borrowers from predatory lenders. If you are ever feeling frustrated during the loan process, talk it through with your loan officer, often times the condition has a reason behind it that is meant to protect you as a borrower from being taken advantage of.
We take Pride in our work and I would be happy to help you through the loan process myself. Feel free to contact me anytime if you have questions about getting a home loan. There is a loan product to match any situation, check out our loan products below:
Recap of our Loan Products:
1). Stated Income Loans (Great for business owners and self-employed) 20% down / 620+ credit score / 2 years business license / 12-24 months bank statements
2). Foreign Nationals Loans (no social security or residency required) 35% down / Foreign passport / Document income outside US
3). Hard Money Loans (28-35% down / minimal documentation) Fund in 7-10 days. 480+ credit score
4). Raw Land and Construction (Bridge Loans) including Spec Home! 75% loan to cost (cost of land and construction budget)
5). 3% down Conventional (Lender paid PMI)
6). Residential Income/Investment Property (including Mixed Use) Purchase and Refinance Loans 20-35% down depending on property, credit etc.
7). Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
8). Flipper Loans (Flip a property with one of our many options) 30% down we finance acquisition and rehab funds / 1-2 year terms
9). 10.1% down Jumbo’s with NO MI up to $2.5mm
10). Manufactured Housing / Mobile Homes (20% down / 620+ credit score) must be tied to real property/Must be at least double wide/Must be built after June 15th 1996 /
11). Acreage Properties
12). Commercial Loans up to $100mm / Purchase and Refinance Loans 25-35% down depending on property, credit etc.
We also offer:
1). 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $424k) 30 year fixed
2). High Balance Conforming aka Super Conforming (from $424k-$636k) 30 year fixed
3). Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $2.5mm
4). FHA, VA, USDA
5). ARM’s
6). Reverse mortgages up to $10 Million Value
7). Refinance including Cash Out
We boast the best rates in the industry. Allow us to demonstrate our prompt and professional service. Call today for immediate attention to your loan scenario.
Click here to submit your loan application to Valor: GET STARTED HERE – LOAN APPLICATION
Camille Patterson
Loan Officer
CaBRE# 02035349
NMLS#1517035
Valor Lending Group
‘Pride in Lending’
Petco Park – Diamond View Tower
350 10th Ave – 10th Floor
San Diego, CA
Direct: (858) 732-2320
Office: (619) 344-2640
Fax: (619) 872-2400
web: www.valorlending.com
Email: cpatterson@valorlending.com
