The Home Loan Process
Demystifying Home Loans
If you haven’t experienced it before, the home loan process can feel overwhelming. The first thing to do is consult with a mortgage specialist (or two). If you don’t already have someone in mind, we work with some of the best local lenders in the industry, and are happy to introduce you, so you’ll be taken care of. In the current competitive marketplace, using a competent lender is an important component to getting your offer selected.
Get Pre-Approval
If you will be getting a loan to purchase your home or property getting pre- approved is the first step on your home buying journey. Before you schedule any showing appointments, you need to have a pre-approval letter. At this stage, the lender gathers information about income, assets and debts of the borrower (you) to determine how much house you may be able to afford. This includes a credit report, W-2 forms, pay stubs, federal tax returns and recent bank statements. There are a variety of different loan programs, so make sure to get pre-approved for the specific programs that best suit your needs.
Application & Processing
What happens when a loan goes "live"
When you find property you’re ready to buy, your lender will help you complete a full mortgage loan application, and talk you through the various fees and down payment options. The application is submitted to processing, where the documents are reviewed and appraisals and title examination are ordered. Then the loan is sent to an underwriter, who reviews and approves the entire loan if it meets compliance.
Closing
Signing and Finalizing the deal
Don’t be surprised if you’re asked for additional documentation or clarification throughout the process. Once your loan is approved, don’t forget to set up homeowners insurance. Your documents will be sent to the title company, where you’ll sign for the new home and pay any remaining costs. Then the loan is recorded and you get the keys. Congratulations, happy homeowner!
