The process of home buying, especially the first one, is super exciting!! But at the same time, it could be very daunting and time consuming too.
If you have done your homework and are equipped enough with all the needed information about the various aspects of home buying, it could turn into a much more pleasant experience!! Understanding the Home Loan process is one of the most important elements of home buying. If you have always wondered how it works, here is an easy to understand Step by Step Guide for the Loan Process.
STEP 1. PREQUALIFY AT A HOME LENDING COMPANY
After you receive your prequalification request, the home lending company will schedule a consultation with you to start the process. They will also let you know what documentation to bring to your appointment.
STEP 2. TALK TO YOUR LOAN OFFICER ABOUT YOUR OPTIONS
During the consultation, they will discuss your short and long-term financing goals and what options are available to you. You’ll finalize your prequalification by the end of the meeting. Plus, you’ll get your initial loan disclosures.
STEP 3. FIND YOUR HOME & MAKE AN OFFER
Work with your Realtor to find your dream home. Let the loan officer know before you make an offer so he can update your loan file with specific contract details, including the agreed-upon purchase price. Once the final contract is accepted, your home lending company/loan officer will coordinate commitment dates with you and the agents.
STEP 4. DISCUSS RATE LOCK
When you’re ready, the loan officer can go over your interest rate and locking your loan terms in person or over the phone. You’ll get all the information you need to make a well-informed decision about locking the rate on your loan and the right time to do so.
STEP 5. SECURE HOMEOWNERS INSURANCE & SCHEDULE AN INSPECTION
You must have homeowners insurance prior to your loan closing. A professional home inspection is also recommended to avoid any hidden problems which could result in future costly repairs for you.
STEP 6. YOUR LOAN IS IN PROCESS
Provide any additional required documentation to the home lending company/loan officer. Their team will order the appraisal and title work. They also verify your employment, income, assets, and savings information.
STEP 7. YOUR APPRAISAL IS READY
They will contact you about your appraisal and any impact it has on your final loan terms. The appraised value of the property you’re purchasing is valuable information during the processing of your loan.
STEP 8. UNDERWRITING REVIEWS YOUR LOAN FILE
The underwriting team confirms all of your credit, employment, and financial information and verifies that you meet all of the required criteria for final loan approval.
STEP 9. YOUR LOAN IS APPROVED
You will then be sent a letter confirming your final loan approval. A meeting is scheduled by the home lending company to meet with you and update you on any other information needed to proceed to closing.
STEP 10. PRE-CLOSING CALL
Several days before your closing date, one of their team members will contact you and review your final loan terms and amount, escrows, closing cost payment amount, and when and where closing will take place. You’ll arrive at closing knowing exactly what to expect!
STEP 11. FINAL REVIEW OF YOUR CLOSING DETAILS
The closing date, time, and location, and your closing cost amount – which you’ll pay with a cashier’s check will again be confirmed with you. Remember to bring your driver’s license and your cashier’s check to closing!
STEP 12. GET THE KEYS TO YOUR HOME Your closing goes smoothly – and you get the keys to your new home at the end of closing. Congratulations, you’re a homeowner!
Author: David Bryce
David Bryce is a Senior Loan Officer at Priority Home Lending LLC in Greater Seattle Area. For your Loan related questions, contact David at email@example.com, www.david-bryce.com
For your Real Estate related questions, contact Shital Doshi Shah
Shital Doshi Shah is a Residential, Commercial and Relocation Realtor in the Greater Seattle area. She works hard to provide her clients with the most positive real estate experience possible. A vital part of today’s real estate industry is technology, and to that end she provides her clients with state-of-the art marketing and web tools. It’s just one of the many things that has made her one of the most respected real estate agents in the communities and neighborhoods she services