Mortgage Pre-Approval Process
Sellers may first request that you produce a mortgage pre-qualification document even before you make any progress on buying the home. The document helps the sellers to weed-out the serious buyers from jokers. It shows what you can afford, factoring in various issues such as total income, existing loans, and credit rating. It also can help you narrow down the ideal mortgage options that you can afford.
Finding an Agent & Homes You Like
The next step after the pre-approval process is to find real estate you love or your dream property. You can conduct an online search on some of the top area realtors to start searching for a home with, ask for recommendations from friends and family members, or read online reviews to choose a realtor for you. You want to make sure you work with someone to find the home you want and can afford to finance.
Applying for a mortgage might seem to be a daunting task. However, most of the professional lenders or bankers will guide you throughout the process and help you complete everything you’ll need. Additionally, getting pre-approved can help make your mortgage process a bit easier. Be sure to gather important financial documents to apply for your mortgage, including W2s, pay stubs, bank statements, tax returns and more.
After the lender collects and reviews all your information, they will assemble an orderly and complete package for you (the borrower/buyer) to get things started. The lender will then take a few measures such as;
- Conducting an assessment of the property
- Ordering title search and property evaluation
- Verifying the bank documents and employment status
The underwriter is the ultimate and key decision maker in the whole process. After the whole documentation process, the underwriter closely scrutinizes the whole package, and cross references all the information to ensure it`s accurate. If not, they put the whole process in suspension until the documents are sorted out.
Pre-closing and Closing Stages
During these two stages, the title insurance is ordered, and the lender funds your account with a check, draft, or wire the agreed amount to the seller. This is where the mortgage will be finalized, the seller will be paid, and you will own your new home! Be aware that there are closing costs associated with this that you should prepare for.
If you’re a first time home buyer and looking for more education and preparation materials, download our eBook now!