The Barrington Financial Group, Inc.

Question 2. What does it mean to be qualified?

Answer:
For a consumer to be "qualified" several things must occur.

A. The 1003 Loan Application must be completed and signed by the loan applicant.

B. The credit report must be pulled by the broker/lender.

C. All necessary documentation needed to process the loan must be given to the broker/lender.

c. 1099's (if self employed)

d. Bank statements (if applicable)

e. Copy of lease contract (if applicable)

f. Copies of settlement letters pertaining to any collections or charge off accounts appearing on credit reports.

g. Copy of Warranty Deed (if applicable)

h. Etc.

D. A licensed appraiser, approved by the lender, must perform an appraisal on the subject property.

E. All documentation pertaining to the loan must be submitted to the lender's underwriting department to verify its accuracy and completeness. Once this has been done the loan can be approved. Underwriting can then issue a "Loan Approval" letter. Many times this letter is referred to as a "Commitment letter" or "Clear to Close Letter."

F. Technically, your loan is not approved until this "Commitment letter" has been issued.