Home Loans from Start to Finish
The most important step in obtaining a first time home loan is to find a mortgage provider who will lend you the money you need for your dream home and match that with your credit. We have also listed many other steps that may help you being a first time homeowner or someone that forgot all the chains of command to get that loan you want.
Step One: The Loan Application
It’s important to make sure your application is complete and accurate. Missing or incorrect information can delay the loan or can even cause you to be turned down for a loan. A good loan officer will take time with you and not rush through the process.
Step Two: Loan Processing
Step Three: Underwriting
Sometimes there’s still some missing information at this point that will delay your loan approval. For instance, if an appraisal of the property is required, the appraisal may not have been completed yet. In cases like these, the underwriter will approve the loan, conditional upon meeting certain critieria. Then he will send the loan back to the processor, who will make sure the conditions get met – such as making sure the appraisal comes in at a high enough value.
Step Four: Closing and Funding
Once the loan is approved by the underwriting department, it goes to closing. Closing is the process where the lender’s office communicates with the title company to get all the paperwork in order for settlement.
At this stage, the money is made available for the loan. Banks and many mortgage companies use their own money to fund the loan, so no wire transfers from other entities are needed. But in many cases, especially with mortgage brokers, another entity actually funds the loan. The money is wired electronically a day or two ahead of time to make sure it’s available for settlement.
At the Settlement Table
It all comes together at the settlement table. At settlement, several parties are represented. The buyer and the buyer’s real estate agent will be there, as will the seller and his agent. A settlement attorney, who acts on behalf of both the buyer and the seller, conducts the final transaction. If every person has done his job along the way, the settlement will be smooth, with no last-minute problems.
Closing Costs: What to Expect
Applying for a loan for the first time? Check out our first time home buyer programs including financing in California, Texas, and nationally. Search our national lenders looking to bid you the lowest mortgage rate possible.