The mortgage loan process is confusing. It needs documents and a clear understanding of how a loan is approved. Especially if you’re not a lawyer or a real estate worker, these processes are complicated.
If you’re a regular homeowner or a buyer, below are the easy steps on how to get your first mortgage loan. Be familiar with these steps and take note of the necessary documents.
Step 1: You need to be pre-approved or pre-qualify.
This pre-qualification process is the front end of the mortgage loan approval. In this process, a lender will review your financial status, especially on your income, debts, and assets. They need to do this to check if you’re an excellent payor for a loan.
In the Mortgage Loans Corpus Christi, TX website, you will fill-up the pre-qualification form to get started. This form includes the loan type, estimated property value, estimated loan amount, and your credit rating. Access yourself if you have an excellent, good, fair, or poor credit rating. Also, you need to be honest on how soon you want to process the loan. Is it within 30 days or the next 90 days? If you’re not sure, then choose the “Not Sure” option in the dropbox menu.
Step 2: House Shopping and Purchase Agreement Signing
When you’re already pre-qualified, it’s time to pick your dream house. House hunting or shopping is one of the main steps in the mortgage process. You are not just choosing what’s best for your family. You are also deciding base on your budget. There is a different process if you wish to change your preferred house. As a homeowner, your task in this process is to locate a new home. Then, you need to negotiate with the price and sign the purchase agreement.
Step 3: Process the loan application.
Most lenders use the same loan application form. They use the URLA or the Uniform Residential Loan Application, some lenders call it as Fannie Mae form 1003. You need to make sure to fill out the necessary information about the property. Plus, data such as what is the type of loan you will use and primary information about the borrower.
Good Read: 10 Step Guide to The Mortgage Loan Process
Step 4: Mortgage Processing by the Loan Processor
If you’re a loan processor, you need to collect all the data from step 1 to step 4. You need this information to create a file. You will also review the record to make sure all the papers are ready for the underwriting process. The documents are the following; tax records, bank statements, employment letters, and the purchase agreement. If you need help in mortgage processing, Mortgage Loans Corpus Christi, TX is the most trusted mortgage lenders in Texas.
Step 5: Underwriter approves or denies the mortgage loan file.
The mortgage underwriter will check the capacity, credit, and collateral on your loan. They will ask these questions: Do you have the financial means to repay your debts? Do you have a good history of paying your past dues? Does the house serve as a good collateral for the loan?
Step 6: Final Approval and Closing the Deal
Now, is the time to celebrate. Once the underwriter issues the approval, you can attend the closing to seal the deal. The mortgage underwriter will label the loan as “clear to close.” Which means you pass all the requirements and the loan can be funded. At this step, you can slowly pack your things to a better life.
Good Read: Mortgage Loan Approval Process