real estate finance - full book (500 pgs)

Closing costs the escrow officer calculates all

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Unformatted text preview: , it is forwarded to the nearest FHA or DVA office. The packages are given to the mortgage credit sections, where personnel qualify the borrower. Individual loan examiners analyze each loan. If they are unable to make a decision because additional information is needed, they will request it from the lender in writing. If the borrower is qualified, they mail the approval to the lender. If the examiner concludes that the borrower cannot qualify, the loan is given to a supervisor. If the supervisor concurs, the loan is rejected. One person may approve a borrower, but it takes two people to reject the loan. When borrowers are approved by these lenders, they should in turn be automatically approved by the appropriate agency. That is why this method of approving loans is referred to as DVA automatics. The major advantage of a DVA automatic is that it reduces the time it takes to get the loan approved involving “in–house underwriting.” The loans are approved automatically only if all requirements have been met; if the package is deficient, it will not be approved. Through “direct endorsement,” this automatic approval is also available for FHA loans. ON–LINE LOAN With the recent surge of Internet use, coupled with heavy website advertising by lenders and mortgage brokers, many consumers are obtaining real estate loans on–line. As this trend continues to expand, it should diminish the financial advisory role of real estate sates agents, and also reduce the need for face–to–face interaction between borrower and lender. Welcome to the world of cyber space underwriting! IF A LOAN IS TURNED DOWN Depending on the circumstances, a borrower whose loan application is denied might consider various alternatives to make the transaction more acceptable to a lender. Dynasty School (www.dynastySchool.com) 14-27 REAL ESTATE FINANCE Information – Submit additional qualifying information to the lender, if available. Re–Application – Apply to another lender, and/or apply for a different type of loan. Diminish...
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