Conventional Loans — How to Get Your Way with the Bankers
Step 1: Shop around for lenders
Have the same conversation and same questions to ask for a few different lenders in your area, to see the variety in options.
Step 2: Pre-approval
The best way to go about this is to get a pre-approval on a loan before you go shopping
Step 3: Underwriter
Remember that the loan does not get approved by the guy you talked to upfront, but rather by the underwriter who works at the back, and this is because they want to make the transaction as objective and rational as possible, rather than make way for emotional bias’, etc.
Step 4: Appraisal
A lender typically hires an appraiser, who gives a valuation of the property
Depends on the type of the property as to how much an appraisal costs, because it is different for residential properties and commercial properties, et cetera
Single-family -> $400
Multi-family -> $1000
Commercial -> upwards to $4000
Step 5: Underwriting again
After appraisal of the property has been conducted, the underwriting process re-occurs
