Home Loan Process
Navigating the mortgage process can be a daunting task. However, having an understanding of the steps involved can help alleviate any anxieties and ensure that the process runs seamlessly. Below are the five fundamental steps in the home loan process.
Step 1: Find Out How Much You Can Borrow
Step 1: Find Out How Much You Can Borrow
Before embarking on the mortgage process, it’s essential to determine how much home you can realistically afford. This step should be taken before initiating your search for a property. By answering a few simple questions, we will calculate your current buying power, based on industry guidelines and current mortgage interest rates.
Step 2: Select The Right Home Loan
Step 2: Select The Right Home Loan
Home loans come in various shapes and sizes, each with its unique features and advantages. To determine the most suitable loan for your financial situation and objectives, it’s crucial to understand the benefits of each option. Whether you’re purchasing a new property or refinancing an existing one, you have the choice of five distinct loan programs and two types of home loans.
Loan Program
Conventional, FHA, VA, USDA, and Jumbo
Types
Fixed-rate or adjustable-rate mortgage – Each has their unique advantages, making them suitable for different situations. With our expert guidance, you can select the home loan that aligns with your current needs and future financial objectives.
Step 3: Apply For A Loan
Step 3: Apply For A Loan
Step 4: Loan Processing Begins
Step 4: Loan Processing Begins
While lenders follow national and government agency standards, loan approval guidelines vary depending on the loan’s terms and variables of each loan. Generally, approval hinges on two factors: your capacity and willingness to repay the loan and the property’s value.
After receiving your loan application, we’ll begin the loan approval process immediately. Our loan processor will review all the information you’ve provided. If any discrepancies are found between the verbal information and the financial documents you provide, either your Mortgage Advisor or the processor will troubleshoot them to resolve any issues.
Step 5: Close Your Loan
Step 5: Close Your Loan
After your loan is approved, you are ready to sign the final loan documents. You must review the documents prior to signing and make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.