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NJ Mortgage Resources

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          Learn more about the NJ mortgage process with our educational resources for homeowners.

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        • What is a Mortgage?A mortgage is simply a lien that is put on a property by a bank or lender of money to assist a consumer to obtain funding in order to purchase that property.
        • Mortgage Pre Approval vs. Pre QualificationAs a technical matter is there are actually 3 levels of “Pre-Approval” available as a lead-up to your mortgage.
        • What Factors Go Into Qualifying for a Mortgage?There are four main categories that a bank will review when they qualify you for mortgage financing, otherwise known as the four pillars of qualifying: Income, Assets, Credit, and Debt.
        • What is PMI Insurance?Private Mortgage Insurance (PMI) is quite simply an insurance policy that protects the mortgage lender in case of default on the mortgage.
        • New Jersey Mortgage Application ChecklistBeing fully prepared leading up to your application can prevent a lot of troubles and tribulations, which can be detrimental and emotionally taxing especially after you’ve gone to contract on your new home.
        • What Is The Minimum Down Payment For a House in NJ?Depending on your circumstances you may be looking to get into a property for the least amount of cash possible.
        • What Are The Three Different Types of Mortgage Lenders?There are 3 different types of lending companies that originate mortgage loans. Banks, Brokers, and Mortgage Bankers.
        • What Determines Mortgage Rates?A variety of factors lend their hand in the determination of where a particular lender will be on rates.
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Mortgage Approval FAQs

What Are The Benefits of Pre-Approval?
Being pre-approved means that a lender has evaluated your finances and concluded that based on the information provided to that point, you are eligible for mortgage financing. Pre-approval gives you an advantage when making an offer on a house, because it shows the seller that your credentials and resources have already been verified with a mortgage lender. See our page
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Does Having Multiple Pre-Approvals Hurt Your Credit?
Not necessarily, but pre-approvals often require the use of a “hard credit inquiry,” which can reduce the buyer’s credit score by approximately three to five points and will appear on your credit report for up to two years.
Can You Get Multiple Pre-Approvals for a Mortgage From Different Lenders?
Yes, you can have multiple pre-approvals from different lenders. Each pre-approval letter has an expiration date, so be mindful of that as you continue your house hunt.
What is a “conditional mortgage approval?”
A conditional mortgage approval means that your mortgage underwriter is generally pleased with your application, and they are willing to approve your request for financing as long as you are able to meet certain conditions that they will list in that approval. Examples of approval conditions may include items such as evidence of homeowner’s insurance, title insurance policy issuance, or
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Does a 401k loan affect mortgage approval?
Per standard underwriting guidelines, 401K loan payments are not considered when calculating debt to income ratios, therefore have little to no bearing on a mortgage application. For more information on factors that affect qualifying click here.
How long is a mortgage pre-approval good for?
Technically speaking mortgage pre-approvals are good as long as the circumstances that were used to obtain the pre-approval (income, employment, credit, debts, etc) don’t change. That said, those circumstances are usually evidenced by the collection of documents (bank statements, paystubs, credit report, etc.) each of which have a qualifying usage expiration date of usually 90-120 days from the date of
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How often does an underwriter deny a loan?
About 8% of mortgage applications are denied by underwriters on average, although the rate varies depending on location. That percentage will drop if you are working with an educated, experienced loan officer.
What are common reasons for denying mortgages?
Some of the common reasons an underwriter may deny a loan are a low credit score, changes in employment status, lack of seasoned, verifiable assets, property issues, and more.
How long before looking for a home should I get pre-approved for a New Jersey mortgage?
Ideally, you want to speak with a New Jersey mortgage representative about 3-6 months before starting your home search. This allows enough time for your Loan Officer to run your credit report and vet out any potential issues with your credit. They can also make recommendations about paying down credit balances, gathering assets, and stabilizing income so that you are
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How long does it take to get approved for a New Jersey Mortgage once I apply?
The rule of thumb is 3-4 weeks from the time you apply for an NJ Mortgage to the time a commitment letter is generated. This timeline however can be improved if your lender is running efficiently and you are able to provide any documents quickly when requested. It also could be improved if there is a waiver for your appraisal,
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NJMortgageResources.com provides homeowners with all the information they need to navigate the complex New Jersey mortgage process and get the best rate possible for their situation. Browse our educational resources and get a free customized rate quote from one of our top NJ mortgage specialists who can also help you with any additional information you may need or questions you may have.

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  • About
  • Resources
    • What is a Mortgage?
    • New Jersey Mortgage Application Checklist
    • Mortgage Pre Approval vs. Pre Qualification
    • What Is The Minimum Down Payment For a House in NJ?
    • What Factors Go Into Qualifying for a Mortgage?
    • What Are The Three Different Types of Mortgage Lenders?
    • What is PMI Insurance?
    • What Determines Mortgage Rates?
  • FAQs
  • Glossary
  • News
  • Blog
  • Get a Custom Rate Quote

Resources

  • What is a Mortgage?
  • New Jersey Mortgage Application Checklist
  • Mortgage Pre Approval vs. Pre Qualification
  • What Is The Minimum Down Payment For a House in NJ?
  • What Factors Go Into Qualifying for a Mortgage?
  • What Are The Three Different Types of Mortgage Lenders?
  • What is PMI Insurance?
  • What Determines Mortgage Rates?

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