Mortgage Approval and Rate Lock
After you have visited homes, made an offer, and had your offer accepted, there are two important steps related to your mortgage – locking your rate getting full approval for your loan.
Your rate can only be locked for a specific period of time, so most mortgage lenders won’t start that process until you have your offer accepted. Your CityWorth mortgage banker will review the options you have around locking your rate. Most of the time, we recommend locking it right away. That secures the current rate. You may choose to float your rate (not locking it in) if you think rates are going to go down. That is risky because you can’t go back if rates go up.
Most of the approval documents requested are to update the account, get final verifications, and make sure anyone reviewing has al the documentation they need. For full approval, you will have to provide more recent paystubs, bank statements to show you funds for closing, and letters of explanation for anything that needs explaining from your credit , income, or debts. When underwriting does their final review, they may uncover something new that requires extra documentation.
- More recent paystub
- More recent bank statement
- If borrower is getting a gift they need to be aware that we will need the Bank Statement for the donor showing the money coming out, and also the Gift Letter signed by the donor.
- Inquiries Letter – Borrower confirming that the credit inquiries they have made on the account did not result in opening any new credit lines (New Accounts)
- Borrower Certificate of Authorization (Wet Signed)
- Child support/alimony documentation
- Letters of Explanation for anything unusual