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Portland Lending
Greater Portland Oregon Area
Frequently Asked Questions
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The following FAQs (frequently asked questions) will help you understand the mortgage process and make those important decisions involved in buying or refinancing a home.
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When should I start the mortgage process?
The best time to look for a mortgage loan is before you look for a house. Beginning the financing search gives you plenty of time to pull together records you will need to get a mortgage when you find the home you want to buy.
- Pre-Qualification
The mortgage pre-qualification step is a relatively simple one, but it is an important one. pre-qualification begins the process of formally applying for a mortgage, and it gives everyone involved, especially you, a clear sense of the direction they should be headed.
- Pre-Approval
A mortgage pre-approval is a formal letter from your lender that tells the seller and their real estate agent that you have had your credit reviewed and are "credit worthy." It also declares that you have been approved up to a certain loan amount.
One of the benefits in having a Mortgage Pre-Approval, is eliminating anxiety since you do not have to wonder about your credit rating or how much of a mortgage you've been approved for.
When you indicate to the seller of the home you want that you have been "pre-approved" for a mortgage, your offer becomes more attractive.
Closing on your new house will usually be faster. The pre-approval process includes some of the steps that would be taken in the regular mortgage process.
To get a Mortgage Pre-Approval, contact Brian Dehning.
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How long does the whole process take?
The length of time it takes from start to finish can vary with the details of your transaction.
- The fastest would probably be a 2 day closing from start to finish. These are very rare and can only happen if you have a just about perfect loan.
- The normal time frame is usually 2-3 weeks to obtain loan approval and then another week or so to close.
- Some loans can take months to close. For example, construction loans with all the permits that are required can take a long time. Also, a foreclosure loan can sometimes take a long time.
- If you make application before you buy your home and have your loan pre-approved, you can save yourself alot of time.
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What documents will be required of me to have my application processed?
In order to process your mortgage, you will need several pieces of information regarding your income, debts, and residency.
You may also be asked to provide other information
- Tax returns
The previous two years federal tax returns
- Specific financial documentation
If you are self-employed, own rental property, or have income such as commissions and bonuses
There's nothing like preparation to help remove some of the anxiety from the mortgage application process. An hour or two spent "putting together" financial information can save days down the road.
The place to start is to download our Application.
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How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply
- Earnest Money
A deposit towards a purchase made by a buyer to demonstrate that the buyer is serious (earnest) about wanting to complete the purchase.
- Down Payment
By requiring a down payment in advance, the lender greatly increases the chance that any such future sale would be able to cover the full amount of the loan.
- Closing Costs
It is common for a variety of costs associated with the transaction (above and beyond the price of the property itself) to be incurred by either the buyer or the seller. These costs are typically paid at the closing, and are known as closing costs.
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