The home loan process can seem complicated and frustrating. There’s a lot of paperwork involved, and at times it feels like everyone but you has control on what is happening. Yet, with some study, diligence and the perfect loan officer, you can take back a feeling of control over the process and actively take part in the funding of one of your most important purchases.
Before beginning looking for a mortgage, become knowledgeable about the different kinds of loans, terminology and rates. Read the newspaper’s real estate section and browse mortgage broker sites which provide information. Make a list of some questions that you may have regarding the information that you find. Prepare a budget and determine which kind of. This may become your benchmark.
The most important thing you can take from the mortgage process is to obtain the ideal lender and loan officer. It is the loan officer’s job and your loan file smoothly through to loan approval. He should be knowledgeable, experienced, responsive and prompt, in addition to willing to spend some time to answer questions, explain the loan process, programs and terms. Personal recommendations from friends, colleagues, family and property professionals can help narrow down some options. Make appointments.
By creating copies of your paperwork for every creditor prepare to your appointments. You may need your Social Security number and driver’s license, the past couple of years of W-2s and a month’s pay stubs to verify income. If you are self-employed, you will require tax returns for the past couple of years. You’ll also require the past three months’ bank statements and statements for some account that maintain your down payment money. Additionally, make a copy of any credit account or loan bills you pay on a monthly basis, and court-ordered payments such as alimony or child support. The loan officer will also pull a credit report on you.
The loan officer will take all this information and determine what sort of loan you are pre-qualified for based on the information she has on hand. A Good Faith Estimate and Truth in Lending statement are created detailing the terms of the loan and the closing prices. Here is the record you may use to compare loan offers. They should be fairly snug, so go with the best price in the loan officer you can work with the best.
After you choose a loan officer and creditor, she will submit your program to the loan processor, who can compile the document, order the appraisal and gather some additional information and confirmation. The loan processor may request the loan officer for extra information from you, which you want to provide instantly. After the document is completed and the appraisal is finished, she will provide the file into the underwriter, who can decide if the loan is accepted. After acceptance, all that’s left is the closing, where you may sign all of the loan documents and finish the property transport. The procedure usually takes around 30 days.