Getting A Mortgage From Beginning To End

Getting a​ Mortgage – From Beginning to​ End
Purchasing a​ home is​ incredibly exciting and stressful .​
Knowing as​ much as​ possible before you​ purchase is​ the​ key to​ reducing stress .​
Getting a​ Mortgage – From Beginning to​ End
The mortgage process can often be a​ confusing one .​
Most homebuyers are interested in​ their dream home,​ not their lender .​
Throw in​ endless forms and document requests,​ and the​ mortgage process can quickly become miserable .​
Here is​ an​ overview of​ how it​ works,​ which will hopefully cut down on​ your stress.
Searching for the​ best loan is​ the​ first step .​
The best loan for you​ is​ entirely dependent upon your situation .​
a​ low interest rate may be a​ key for one person,​ while a​ low down payment might be critical for another .​
Other factors include your credit score,​ length of​ the​ loan and so on​ .​
I​ highly recommend you​ don’t apply with the​ bank where you​ have a​ checking account .​
If they know it​ is​ your first loan,​ you​ are going to​ get a​ poor deal .​
Shop around or​ use a​ mortgage broker to​ do so .​
Getting pre-approved is​ not a​ required step,​ but you​ should do it .​
This single step will cut the​ stress factor of​ buying a​ home by at​ least half .​
Instead of​ sweating your loan application during escrow,​ you​ can relax because you​ are already approved .​
This free time gives you​ the​ opportunity to​ nag the​ seller for breaks on​ the​ home purchase .​
The next step is​ to​ file a​ mortgage application .​
Many people make the​ mistake of​ providing the​ minimum amount of​ information possible .​
Don’t .​
If you​ have credit problems or​ some other negative,​ the​ lender will find them .​
Provide as​ much information as​ possible on​ your application .​
Part and parcel with your application is​ supporting documentation .​
This is​ where a​ mortgage broker can really help .​
a​ lender is​ not going to​ take you​ application at​ face value .​
Unlike applying for a​ credit card,​ the​ lender wants to​ see supporting documentation .​
You will commonly be asked to​ submit tax returns,​ pay stubs,​ bank account statements,​ investment account statements and so on​ .​
The lender will inevitably lose some of​ these and ask for them again .​
Welcome to​ the​ mortgage loan process!
Appraisals,​ inspections and title searches will next be ordered on​ the​ property .​
The lender wants to​ make sure the​ seller has the​ right to​ sell it,​ the​ home is​ in​ good shape and it​ is​ worth enough to​ justify the​ loan .​
There isn’t much you​ can do during this step,​ so relax .​
At this point the​ loan is​ processed to​ get everything in​ shape for the​ underwriter review .​
The underwriter is​ the​ buck stops here person for the​ lender .​
The underwriter will approve or​ deny the​ loan .​
They may also ask for additional information or​ offer adjusted terms .​
If this occurs,​ you​ can make counter offers .​
Assuming the​ loan is​ approved,​ commitment time is​ the​ next step .​
Yep,​ you​ will sign the​ loan documents .​
This sounds simple,​ but many people can’t help but get nervous about committing to​ the​ repayment of​ hundreds of​ thousands of​ dollars .​
Just do it!
Assuming everything is​ going well with the​ purchase,​ the​ next step is​ closing .​
The lender will wire money to​ the​ title company,​ escrow will close and you​ are the​ proud owner of​ a​ new home and hundreds of​ thousands in​ debt!

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