ANSWER: Your loan will be approved well in advance and you will want to be prepared as your home progresses and you prepare to close. The following is a list of six helpful hints: 

1. Be sure you understand and can comply with all of the conditions of your loan approval.
2. Let your lender know of any changes to be made to the house, the sales price or any contract changes.
3. Do not make any changes to your financial position without consulting your lender. It may not be wise to buy a new car before closing your mortgage loan if it affects your loan approval!
4. Save copies of all major paperwork that might influence your loan. For example, save copies of any bonus checks you might receive.
5. Notify your lender when you are within 60 days of closing. You will probably be at the building site and in communication with the builder to know this approximate date.
6. It is important to notify your lender so that any updates that are necessary can be accomplished.

Use extreme caution concerning setting your closing date and time. If you give notice where you are currently living and must be out by a certain date, it will be very uncomfortable if the home is not complete and will not pass final inspection. Many times buyers get approved for their home loan, begin construction and then forget that the lender will require that the file be updated prior to funding into the permanent loan. When the house is finished, the builder will want his money. He or she probably won't appreciate any delays and your lender will appreciate your advance notice and preparedness.

ANSWER:  Many years ago, savings and loan institutions made the majority of home mortgage loans. They would often set a rate for new home loans for long periods of time - up to a month or so. As the lending industry has evolved, the buying and selling of mortgages has become very sophisticated and there are many different investors making new home mortgage loans. The easiest indicator you can follow in watching the direction of interest rates is the bond market.

ANSWER: Home loan interest rates change on a daily basis. They can change more than once a day. When you get a quote, it becomes your rate once you lock-in with your selected lender. A lock in is a promise (in writing) to close your loan at a certain interest rate and points.

ANSWER:  In mortgage slang it refers to a financing option you could choose to avoid Private Mortgage Insurance (PMI). The 80 refers to an 80 percent first-lien mortgage. The first 10 refers to a 10 percent second-lien mortgage and the second 10 refers to the required down payment of ten percent.

ANSWER:  Most loan types are very interested in financing recent graduates. Many investors will use your college credits in your chosen field to determine your experience. In most cases, they also expect that you have established very little credit. This is acceptable as long as the credit you have established is good.

ANSWER: The number one tip is - do not pack your personal papers! Mortgage loans are very precise and require documentation furnished by the borrower. I suggest keeping your financial records with you until your new loan closes. You may also be prepared by knowing the exact details of your relocation policy.

These are a few of the items your lender will want to know:

ANSWER: Each loan type has different guidelines for citizens of other countries. FHA requires that the home you are buying in this country is your primary residence. You must have a Social Security card, as well as all of the other documentation required for FHA buyers.

Fannie Mae requires that you have permanent resident alien status - a green card. If you are a non permanent resident alien, an additional down payment, as well as permission to work in the United States for extended periods through a work visa is required, and you must occupy the property.

ANSWER: We are finding many borrowers that have rearranged their priorities as well as their spending habits. Many have learned valuable lessons from their bad experiences and have come through their "healing time." They are now ready for home ownership.

It is important to note that there is a big difference between a person who had a bad credit experience in his or her life and a person who is a bad credit risk.

ANSWER: Yes! It is actually easier to buy a home if you know in advance that you will be approved. You can make arrangements with most lenders to be "prequalified" for your purchase.

Here's how to do it: 

1. Make an appointment to see your lender. Take your financial information, such as bank statements and W-2 forms, as well as paycheck stubs.
2. The mortgage company will access your credit report and review your documents. At that time, you will be able to discuss different financing options and decide which type of loan is best for you.
3. Most lenders will write you a prequalification letter that will let your Realtor, as well as the seller of a property, know that you have been counseled and should be a preferred purchaser. It is a good feeling to have the pressure of worrying about the loan behind you and know that you can concentrate on finding that "dream home."

Answer: Personal referral. If a friend or family member has recently completed a refinance or home purchase, always ask how their transaction was handled. If they were pleased, you should give extra consideration to their lender.

While Realtors will usually refrain from "recommending" anyone, they can usually tell you which companies have performed well in the past. Because of the large number of lenders they have experience with, they can be an excellent source of referrals.

Go to the lender's office and interview the loan officer or manager.