The mortgage process can be a daunting task for many home buyers. However, understanding the process and what to expect can make it a lot less stressful. Here is a step-by-step guide to the mortgage process:
- Pre-Approval – Before you start looking for a home, it’s important to get pre-approved for a mortgage. This will give you a better idea of how much house you can afford and also help you understand what payment you are comfortable with!.
- Mortgage Application – Once you have found a home, you will need to complete a mortgage application within 7 days. This will include providing information about your income, employment history, and credit score.
- Underwriting – Once your application is received, it will be reviewed by an underwriter. They will verify the information provided on the application and frequently ask for additional information. Once all information is collected, they determine whether to approve the loan.
- Appraisal – The lender will order an appraisal of the property to determine its value. The value of the property will be used to determine the loan-to-value ratio, which will impact the interest rate on the loan.
- Closing – Once the appraisal is complete and the loan is approved, you will need to close on the loan. This will involve signing a lot of paperwork, including the mortgage and the deed.
- Funding – After the closing, the lender will release the funds to the seller and the home will officially become yours.
Throughout the process, you will be in contact with your loan officer and the title company to ensure that everything is on track. It’s important to be prepared, with all the required documentation ready, and to communicate with your lender to ensure a smooth process.
It’s also important to remember that there are different types of mortgage loans available, each with its own set of terms and requirements. It’s important to talk to a lender about what loan best fits your needs. I have a few lenders that I highly recommend.
By understanding the mortgage process, you’ll be better equipped to navigate it and ultimately achieve your goal of homeownership. It’s important to work with a lender and a real estate agent you trust and feel comfortable with, feel free to reach out to me to start your home buying process!