Purchasing a home is often a complex process. As a result, it’s important to understand what to expect when you are getting ready to buy a home. Here, you can find some of the most important milestones of the home buying process and why they are so important.
If you are ready to buy a home, great. The first step in this process is to get pre-qualified for a loan. This is a no-commitment, no cost, easy process that gives you a jumping off point for your new loan. This can be done over the phone or in person with a loan officer. There are some lenders that even offer online forms.
The lender you choose can determine an estimate for the amount you can borrow and what your average monthly payment is going to be. When you pre-qualify for a home loan, you can determine a budget and improve your negotiating position when you decide to make an offer. Once you get qualified, you can begin the application process.
After you have found a loan you want, you can make an offer to purchase it from the seller. Usually, a real estate professional is going to handle the negotiations and a contract is submitted, along with your mortgage pre-qualification letter. After your offer is accepted, you receive the initial disclosure package and then the application process begins.
Usually, you hve to provide a loan officer and a processor with information about your assets, income, and more. To make sure the loan process remains on track, you need to hve these documents finished quickly.
The Loan Processing
During this step, your title work and appraisal is ordered. After the needed documentation is present, the processor reviews everything for accuracy and completion. They will verify information on the credit report, appraisal, title work and any other documents that are needed. After the processor has reviewed the entire application package, they will pass it on to the underwriter. The loan officer will ensure you are informed, answer your questions, and help you through the loan processing stage.
Underwriting for Your Home Loan
When your loan reaches this milestone, the underwriter is going to review your entire loan package to figure out approval for the loan is possible. The underwriter will review the asset documentation, disclosures, employment, the appraisal, credit, and any other documents submitted, along with the loan program’s regulations and guidelines.
After all conditions are met and the contingencies for the loan are cleared, the underwriter will provide the clear to close. Once your loan makes it through the underwriting process, you are in the home stretch.
Getting a Loan for Your New Home
If you are ready to buy a home, and you don’t have cash to pay for it in full (which most people don’t) then the process mentioned above is what you must follow to get the loan you need. Be sure to work with a quality lender to ensure your loan process is successful. If you are ready to get started, apply now.