What to Expect When You Apply for a Mortgage

Doug Hill — Wed, 06 Jul 2011 17:03:00 +0000

You’re ready to make that big step into home ownership, which can be exciting, but if you’ve never gone through the process? It’s easy to get overwhelmed but when you have a better understanding of what to expect from the process of obtaining a mortgage, you will feel much more confident about every decision you make no matter what comes your way. While we can’t cover everything that you may experience when you apply for a mortgage, here are a few things you can surely expect!

The Mortgage Application Process

1. Discuss your needs and your finances with your mortgage professional - While this is not a step that you are required to take, even before you begin shopping for a house or a mortgage, it’s a good idea to go over your finances with a mortgage representative that can provide further advice on saving for your down payment or which debts you may want to pay off in order to qualify for the mortgage amount you’re hoping for.

2. Get Pre-Approved - Before you begin shopping for a house, you want to get pre-approved so you know what your lender will allow you to spend. In order to do this, you will need to need to complete a basic mortgage application and provide information about your income, debts and expenses. Your mortgage professional will look at all of this information and will advise you on the best mortgages for your needs, and provide a guideline as to how much you can spend on your home.

3. Commit To a Mortgage - The specific process depends upon your lender, but typically once you’ve made an offer on your home, you will have to provide a few further details about you that way your mortgage application can be formally processed. You will receive a mortgage commitment, but there may be some conditions attached.

4. Fulfilling Your Mortgage Conditions - It depends upon your state and lender, but often you will be asked to prove that you have your down payment and even some of your closing costs in place 30 days before you’re set to close on your home. If some of your down payment will be coming from a family member as a gift, you may also be asked to provide a gift letter. Your lender wants to ensure that you aren’t borrowing your cash assets that you’re using for your home purchase.

5. Sign Your Closing Papers - This may happen before your closing date or on your closing date depending upon your lender and where you live. You will then confirm the frequency of your mortgage payments and arrange a payment method for your mortgage premiums.

The above outlines some of the main components of the mortgage application process, though some of the finer details will depend upon your lender and the state you live in!

Home Purchase Loan Tips

Doug Hill — Tue, 25 Jan 2011 19:25:57 +0000

If you are thinking about purchasing a new home, don’t wait until you find the perfect home to get prequalified! Make sure your credit is healthy and find out how much you can qualify for before you find the home of your dreams. This helps insure that you not only choose a home in the right price range, but help avoid falling in love with a home that you can’t afford!

Another great reason to get quaified as early in the process as possible is to insure the fastest closing possible. If there are multiple offers going in on a home, you may be at a disadvantage if you are not able to secure financing quickly. Don’t wait until the last minute!

We have home purchase specialists standing by that can give you FREE home purchase finance advice. Feel free to request a FREE Rate Quote or to Contact Us directly.

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Residential Home Funding » Home Purchase

What to Expect When You Apply for a Mortgage

The Mortgage Application Process

Home Purchase Loan Tips