Professional Realty Consultants

Providing comprehensive, reduced cost residential real estate services. One-person contact, helping clients sell, find, and finance their homes.
Serving Chester, Delaware, Montgomery, Philadelphia, & Bucks Counties

Member of National and Pennsylvania Association of Realtors®
Member of Suburban West Realtors® Association
Member of The Delaware Valley Real Estate Information Network (TREND)
Licensed by the Pennsylvania Real Estate Commission

THE MORTGAGE APPLICATION
AND MORTGAGE APPROVAL

In a typical Agreement of Sale, you must complete a mortgage application, under the terms specified in the Mortgage Contingency section, within 10 days of the execution date.

Once your Agreement of Sale is fully executed, you will want to immediately contact your mortgage broker and schedule an application appointment and discuss the possibility of locking in the prevailing interest rate. Since you have hopefully already been prequalified or preapproved, you will already know how you want your financing structured, the amount of financing, and the loan program.

Your mortgage broker will request photocopies of the necessary paper documentation such as paystubs, W-2s, bank statements, etc. at the time of the loan application. The application will take 1-2 hours depending upon the complexities of your financial situation and can be completed over the telephone/mail or face-to-face. You will be given copies of the application itself and all of the required disclosures. Assuming you applied for conventional, non-subprime financing, you should immediately receive an automated underwriting recommendation as well. This “recommendation,” issued from either FNMA (Federal National Mortgage Association - “Fannie Mae”) or FHLMC (Federal Home Loan Mortgage Corporation - “Freddie Mac”), will detail the conditions the lender’s human being underwriter will want to review prior to issuing an approval.

The conditions may cover a wide scope, but typically are related to proving what you stated on the loan application and an appraisal to validate that the sales price is no more than the fair market value of the property. You and your mortgage broker should work promptly to assemble the necessary documentation to satisfy these conditions.

Once your loan application file is complete, your mortgage broker will submit your file to the lender’s human being underwriter for a decision. The written approval (a.k.a. mortgage commitment), issued by the lender, is what is needed to comply with the mortgage commitment contingency specified in your Agreement of Sale. You and your mortgage broker will need to ensure that this written approval is forwarded to the listing agent and/or seller by the specified mortgage commitment date - typically 30 days from the execution date.

Once this contingency has been satisfied, you should work closely with your mortgage broker to address any remaining conditions which would be detailed in the lender’s approval. All conditions should be satisfied at least a week prior to settlement to ensure that you don’t experience problems at closing.

We hope you consider Professional Mortgage Consultants (PMC) for your mortgage financing needs. See About PMC.

PMC is proud of its 100% approval rate over 15 years - no loan application we’ve taken has ever been rejected. And, our referral rate from previous customers is consistently very high: in 2005, 80% of our clients were either previous customers or referred by previous customers. See Testimonials. Our low overhead plus our unique business concept of one person contact to find & finance your new home means far greater efficiencies than most real estate owned mortgage companies can provide. Thus, our interest rates tend to be extremely competitive, and we never impose any “junk” fees beyond those of the lender’s charges. Additionally, one person contact for both the real estate sales transaction and the mortgage transaction means less hassle for you, less duplication of effort, and direct access to the one person responsible to getting you to settlement, with no surprises.

Click here to view PMC's home page detailing further information & options.