Applying For A Home Loan?
Applying for a home loan after you have identified the house you want to buy is a hurdle. A new home owner will find this process very daunting.
The best part is you stand a chance of being approved.
Before you start the loan application there are some points you should know to enable you hit the ground on a run note. Know if you qualify for the mortgage and determine the range of the price.
In determining the price range, you at least need an idea of how much you are willing to spend. This is because there are different financial situations and different debt levels and all which you want to consider. According to lenders, you should only spend about three to four times your annual income.
The first step in making a home loan application is the mortgage prequalification. The pre-approval and prequalification confuses many people. They do not mean the same. Mortgage qualification is not close to pre-approval with the loan representative interviewing you about our credit and income and will not go into any further details. Real estate agents do not regard a mortgage prequalification as a preapproval will.
Real estate agents fully know that a person is about to buy the house if they see the preapproval will. The process of preapproval examines your credit records and make a decision on the amount to be granted and the interest to be paid therein. For more interest rates details, click here! In the preapproval letter there are details of the type so houses you qualify for and empowers you to negotiate for the same. For the preapproval process you need these documents, borrower ID, tax returns, pay stubs and bank statements.
For your application to be completed you should wait for the three days that have been set by law after which a loan estimate will be sent by the lender. The monthly instalments payable, closing costs and interest rates are the contents of the loan estimate. When the loan is finally approved the figures in the loan estimate may vary from the original loan.
Soonest you are down reviewing your estimate and the loan application the remainder of the work is with the lender. Your loan will start processing and verifying the authenticity of the information given. Lenders will ensure all is in order by looking at your hosue.
Finally, your loan will either be denied or approved. On approval the interest rate is locked, you shall be able to close the process of your home purchase once and for all.