How the Loan Process Works
Get pre-approved for a mortgage with Financial Equities and know in advance exactly how much house you can afford.Completing this step will also increase your negotiating
power since you’ll be viewed as a “cash buyer.”
2. Loan Search
Financial Equities will help you to determine which financing options best suit your needs today and in the future. Hehelps you consider many factors, including:
– How long do you plan to keep the loan?
– Is a fixed or adjustable rate mortgage best?
– How many points should you pay?
– What other costs are involved?
– When should you lock in your rate?
3. Loan Application
It’s crucial to supply you Financial Equites representative with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.
You must also submit paperwork supporting the appli-cation. Information commonly sought includes
– 1-month’s pay stubs,
– Two years’ W2 forms, and
– Account statements verifying the source of the down payment.
5. The Hunt
Begin shopping for a house. Once you find the right home for you and your family, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
Mortgage lenders require an appraisal on all homesales. By knowing the true value of the home, the borrower is protected from overpaying.
Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in aflood zone.
8. Mortgage Insurance
Some loans require private mortgage insurancewhen borrowers put down less than 20 percent ofthe sales price.
9. Loan Processor’s Review
All pertinent information will be packaged by your Financial Equities mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
10. Underwriter’s Review
Based on the information put together by your Financial Equities mortgage professional, the underwriter makes the final decisionr egarding whether a loan is approved.
During this step ,final loan documents are signed .Financial Equities’ closing department will authorize the funding of the loan.
12. Congratulations! You are a homeowner.
If you’d like to learn more, contact Financial Equities today and bein the process to home ownership.