What is the process when
applying for a mortgage

Tips and advice that you can use if you are looking for a mortgage loan

September 18, 2022

Here are a few simple tips and advice that you can use if you are looking for mortgage options but wonder what the process for getting a mortgage looks like. Make sure that you do your due diligence and that you understand what is required to be eligible to get a mortgage, and what information you may need to provide for getting a mortgage. The basics include pay stubs, your federal tax return, and recent bank statements. We break it down into basic steps  for you here:

Start with a loan pre-approval

When looking for a mortgage, start by estimating the amount you’ll need and get a pre-approved mortgage loan. Pre-approval is very important when you apply for a mortgage, and each kind of mortgage requires you to have pre-approval options so that you can move faster with obtaining a mortgage. A pre-approval is good for a set amount of time, usually 60 to 90 days.

Make an offer on a property

Once pre-approved, you can start looking for a property to purchase, knowing just how much you can spend. There are a lot of online real estate options available and portals that can help you find the right kind of property for you. When you find a property that you like, you will have to make an offer on it and wait for it to be accepted. If the offer is accepted, half of your work is already done and you can move ahead with getting the mortgage loan.

Finalize the mortgage process

Once the offer is accepted, the next step is to contact the lender to finalize the mortgage process. This step is very important and requires several documents, including employment and proof of income documents. You will also need assets and debt-related documents. Make sure that you have all the information regarding your credit history on hand to accelerate the loan-taking process. Once all this is done, and you have all the information and the required documents, you can complete the loan process.

It is important that you chose a lender who will get you the best rates and interest options. Some lenders will ask you to provide a credit report along with all the other documents. Make sure you are ready with this document in hand also. The lender is required to give you a loan estimate (LE) within three business days of receiving your application. If you are looking for the best options for home equity, Clovermortgage home equity loans can be the right option.

The underwriting process

Once you are satisfied with the loan estimate and the loan application process is completed, you will have to go through the underwriting process. The underwriters will assess the information you provided with your application and provide you with their final decision. This is one of the most important parts of the process and you might be asked for more information, such as your most recent pay stub or proof of homeowners insurance. Usually, the closing cost is between 2% and 5% of the actual home that you have purchased.

Close the deal

After the underwriting process is concluded and everything else is done, you can close the property purchase process by going to the notary and signing the property purchase deed. You will have a very large stack of documents to bring along with you at the signature meeting with the notary. Make sure that you have all the documents with you, and get the closing disclosure form. There is a three-day review period as well, which is the final countdown for you to get the mortgage and close on the house.

Feature image: Scott GrahamUnsplash

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