Are you in the market for a house? Mortgages make it possible for millions of people each year to purchase their abode. Whether you’re a first-time homebuyer or looking to move up, it’s important to familiarize yourself with the process of obtaining a home loan.
Calculate What You Can Afford
It can be easy to get ahead of yourself when house hunting, but the initial step needs to be evaluating your finances to
deduce what you can realistically afford. You’re going to have a monthly mortgage payment so you want to make sure you’re viewing houses that are financially feasible.
Get Pre-Approval
After figuring out what you can afford and selecting a specific type of mortgage loan, you’ll approach a mortgage lender for pre-approval at an institution such as Guaranty Bank & Trust or The Tuttle Group. A mortgage lender decides how much they’re willing to lend you based on your income, credit score, and credit history. Pre-approval comes in handy since it shows home sellers you’re a prepared buyer.
House Hunt and Make an Offer
Now you’re ready to start searching. Realtors like Taylor Walcik can help you find a home that meets your desires. Once you’ve found the one, you’ll put in an offer. You’ll also put down a deposit, called earnest money, to show the seller you’re serious about the purchase.
Submit a Mortgage Application
Your mortgage lender will aid you in filling out the mortgage application. After you submit all of the required documents needed in order to complete the application, you’ll receive a loan estimate a few days later. It discloses key details about your home loan including the rates and terms.
Mortgage Underwriting
The underwriting process is what lenders use to decide whether or not you’re approved for the loan. They review the application to verify your assets, debt, income, and property details. You’ll receive final approval on your loan application upon completion of verifying your information.
Closing Time
If your loan application is successfully approved, then it’s time to close on your new home. You’ll attend a closing meeting where you’ll sign necessary documents and ask any questions you might have. If everything seems to be in order, you’ll sign to accept the mortgage and will walk out as an official homeowner!
