Getting A Mortgage Loan
There are a variety of things to consider when you’re interested in getting a new mortgage loan, and familiarizing yourself with the process beforehand will surely make it easier on you, and the lender. The five basic stages of the loan process are: getting your documents organized, qualification, finding a loan program that works for you, getting your loan approved, and then closing the loan. Working with a reputable lender can help facilitate the entire process, and make the transaction less stressful for you too.
After contacting a reputable lender, you should consider getting together an assortment of documents including: tax returns, bank statements, proof of employment, credit history, pay stubs, divorce and child support statements if applicable, and anything else that can help the lender determine if you will be qualified to repay the loan you’re applying for.
Generally, there are two types of loan qualifications, and those are “pre-qualification” and “pre-approval”. A pre-qualification is a basic snapshot of your history that lets the lender and real estate agent know that you’re able to indeed get a loan before you start the process of searching for a home. After you’ve found a home you’re interested in putting an offer on, you should consider getting a pre-approval so that you may gain an upper edge on other potential buyers that haven’t procured one yet. Additionally, getting a pre-approval is like saying you’re approved for a specific loan amount and once the offer is accepted, you’re already on the way to closing your loan application.
In today’s market, it is extremely important to figure out your future goals with the home you plan on purchasing. Do you plan on living in the home until you retire? Is this a starter home that you plan on purchasing as an investment, then moving out shortly after? A lender that understands your interests and future ambitions will be able to help you determine which rates, fees, and points will work best for your situation, and help you decide which loan program will work best for your needs.
During the loan approval, it’s important that you abide by strict guidelines so as not to hinder your chances of getting approved. Review your loan application completely, and verify that your credit history, employment history, assets, property value, and any additional information are accurate. Talk with your lender prior to making any major purchases because more debt can likely affect your loan application negatively. If you’re planning on being out of town, make sure that you’ve carried out the power of attorney so that someone can sign the papers in your absence.
During the close of the loan, and after everything has been approved, you’ll want to double check that the interest rate and loan terms match your previous discussions with the lender. Bring a cashiers check with you during this final stage to pay any unpaid closing costs associated with your loan. If you have any questions about the loan process please feel free to contact one of the lenders below.