When Should I Shop For A Home Loan?
BEFORE you look for a house. This helps you and your real estate agent narrow your home search to houses available in your price range (that you can afford).
There shouldn’t be charge for a Pre-Qualification.
A Mortgage Pre-Approval is a formal letter from your lender.
How much does it cost to get a mortgage?
Closing costs can (but not always) include the following: Origination fees, Application fees, Discount points (“points”)Appraisal fees, Title insurance fees, Surveys, Costs for recording documents.
Use this Application Checklist to make sure you gather all of the the necessary papers in order to ensure smooth sailing during the application process.
Mortgage Application Checklist:
Residence history for the previous 2 years:
– Employment history for the past 2 years:
– Current paycheck stubs for the past 30 days
– W-2 forms for the past 2 years
– Previous 2 years of tax returns
– If self-employed, earn commissions or bonuses, and/or if you own rental properties
Previous months of checking and savings statements:
– Bank or credit union
– Mutual fund, stock, bond, or other brokerage accounts – Names and account numbers for ALL outstanding debts
– Minimum monthly payments
– Current balances
Divorce decree (if applicable)Information on child support/alimony payable or receivable
Other real estate holdings:
– Name of lender, account number, address, and phone number
-Copies of all current lease/rental agreements and land contracts:
– Certificate of Eligibility and a copy of discharge papers (DD-214)
What happens once I’ve submitted a mortgage application?
There are six steps in the mortgage process:
1. Within three business days of filing your application, you’ll get a Good Faith Estimate and a Truth-In-Lending-Statement which outlines the approximate costs associated with the loan and title fees.
2. A credit report will be obtained, Verify Employment, Deposits to your financial institutions, and possibly other verification forms as well.
3. A loan processor will review your credit report and look over the verifications. If there are any discrepancies or questions, you’ll be asked to provide written explanation. Once your under contract to buy a home it will be sent to the lender and an appraisal will be ordered.
4. The point where your loan is either approved or denied, will be based on the appraisal of the home you want to buy and are under contract for, your credit worthiness and ability to repay the loan. You may be asked to provide more information to help with the decision.
5. Pre-Closing After your loan has been approved, a loan closer will review your file and prepare it for “closing.”
(closings can happen within 2 weeks or up to 45 days, depending on how quickly the lender and title company can get all necessary files and documents finished)
6. At the closing, you’ll need to bring a certified check to cover the down payment and closing costs.
Get started today. Below are a few lenders that I’ve worked with and have done an outstanding job. Pick the best one that fits you.