Does it feel like you are giving up everything just to qualify for a loan? The process can be a bit daunting, but when you know what goes on behind the scenes that can help you understand the process and the time involved in making sure your loan is the best loan for you. Here are the steps involved and a little about what happens at each step. 1. Pre-qualification Pre-qualification is the term used to explain the mathematical equation used to determine what kind and how much of a loan you can afford. This is usually done by asking a few questions about your income, credit score and debts. It is just a way to see were we first stand. 2. Applying for the loan This is where the process really begins. You can either meet face to face with a Loan Officer (usually the best way) or you can do it over the phone. A loan application is filled out and disclosures are created. When applying for the loan you will be given a list of all of the documents you need to gather. | 3. The processing of the loan application Processing a loan may be better described as verifying all of the information that was provided by you. Typically we will ask for:
4. Appraisal An appraiser will contact you to set up a appointment to spend about 15 minutes looking at your home. They appraiser will also pull "comparable homes" that are close in size and that have sold close by. This helps determine the worth of the property on the current market. 5. Underwriting The underwriter is the person that looks over all of the information gathered and completed and approves or rejects the proposed loan. Sometimes during this process you may be asked to provide additional information. 6. Closing Yeah! This is the time we have been waiting for. A closer will usually contact you about 24 hours before and you will sign the rest of the documents and disclosures. And the process is done! |
We hope this blog helps you when preparing for a home purchase. If you would like to get Pre-Approved and find out what you can afford, Contact Us today! 619-Low-Rate (61569-7283) or drop us an email here.