The Home Loan Process
Demystifying High Rates for Home Buyers
When buying a home, high interest rates can be scary. But interest rates can change, and you can improve your chances of getting a lower rate by having a good credit score, stable income, and low debt. A higher interest rate doesn't always mean you'll pay more in the long run, and there are ways to pay less interest over time, like refinancing or making extra payments. It's essential to work with a trusted lender like Dale Looper with Movement Mortgage, who can help you understand your options and find the best interest rate for you.
Get Pre-Approval
Before starting your home search, it's a good idea to get pre-approved for a loan amount with a lender. The lender will gather information about your income, assets, and debts to determine how much house you may be able to afford. This includes reviewing your credit report, W-2 forms, pay stubs, Federal Tax Returns, and bank statements. There are a variety of different loan programs available, so make sure to get pre-qualified for the specific programs that best suit your needs. By getting pre-approved, you'll have a better idea of your budget and be able to move forward with your home search with confidence.
Application & Processing
What happens when a loan goes "live"
When you're ready to buy a property, your lender will assist you in completing a full mortgage loan application and discuss the various fees and down payment options. Once submitted, the application is processed, and the documents are reviewed, appraisals are ordered, and title examination is conducted. The loan is then sent to an underwriter who will carefully review and approve the entire loan if it complies with the necessary requirements. Your lender will guide you through this process to ensure a smooth and successful home buying experience.
Closing
Signing and Finalizing the deal
It's important to be prepared for additional documentation or clarification requests throughout the loan process. Once your loan is approved, don't forget to secure homeowners insurance. Your loan documents will be sent to the title company, where you'll sign for the new home and pay any remaining costs. After that, the loan will be recorded, and you'll finally get the keys to your new home! Congratulations, and welcome to homeownership!
