The Home Loan Process…Purchase
July 18, 2018
You’ve cleaned up your credit, paid everything on time, saved money for down payment…and you’re prepared to purchase a home…. what’s next?
There are several steps before you make that offer on your dream home. First, turn to the knowledgeable Lenders that will ask you some very detailed questions and make the best recommendation for the home loan to best fit your financial needs.
Here’s what your lender needs to know about you:
- How much can you put down for a home purchase? Are these funds you’ve saved or have they been gifted to you?
- Tell us about your income, have paystubs and tax forms handy for this, is your income stable? What about overtime and bonuses?
- Are you possibly looking for a home in an area that offers 100% financing and/or grant funds? (Some restrictions apply regarding household income and debt ratios). You may still need some funds of your own for these products too.
- Have you ever owned a home before…when…and was it sold?
- How much of a monthly payment can you see yourself making long term?
Being able to answer these questions be a big help when talking with a lender. After all, a long-term purchase of your most valuable asset, is worth some planning time.
After your lender obtains all of your personal information and takes a look at your credit history, they will collect your financial paperwork, and then be prepared to issue you or your Realtor an pre-qualification letter. Most Realtors require a letter like this in writing before they begin to show homes or make a formal offer for you. Best of all, the pre-qualification letter ensures the seller & agents that you’ve done your homework and know they can take your offer seriously.
After your offer is accepted and contract details ironed out, the mortgage loan processing starts. It begins by ordering the appraisal on the property you are purchasing and ends with the underwriter’s approval to close the loan. More questions and maybe more paperwork will likely be requested from you during this time. (For example, an updated paystub, bank statement, and your choice of homeowner’s insurance agency, etc) Don’t worry, this is all part of the process to closing. When the file has been completely underwritten then you are issued an initial closing disclosure and can close in as few as 3-5 days after that. Sounds pretty simple right?
At Guaranty Trust we make it a priority to learn all about your unique circumstances. We'll help you understand and take advantage of a variety of home mortgage options and highly competitive interest rates. Don’t forget our online application process and knowledgeable lenders make it simple, allowing you to relax and focus on finding a place to call home.
Sherry Carney, NMLS#554862
For more information or a free consultation Visit us at https://www.guarantytrust.com/purchase
Equal Housing Lender