Getting a home loan is easier than most prospective homebuyers often realize. Prospective homebuyers can get a home loan in these 7 easy steps! This blog breaks the entire housing process down and explains what homebuyers will need to to successfully close a home loan for a real estate purchase. JVM’s expert team of Mortgage Analysts are also available 7 days a week to answer any questions and seamless guide homebuyers through the entire process to ensure a smooth, fast, and easy homeownership process.
Home Loan Step #1: Compare Rates
One of the most significant components of a home mortgage is the interest rate. This rate will continue for however long the loan term is, so the lower the rate, the better. However, it’s important to determine what rates are available. Keep in mind that most homeowners refinance their mortgage into lower rates – so the first interest rate locked in is not always the last.
Home Loan Step #2: Fill Out Loan App
The next step in the process is applying for the loan and getting pre-approved. JVM Lending has a user-friendly and secure online application that makes it easy to get started with the pre-qualification process.
Home Loan Step #3: Upload Docs
There are some financial history documents that lenders must collect from prospective homebuyers to determine their financing qualifications. Uploading documents as soon as possible can help keep the loan qualification process moving along and help lenders troubleshoot any potential delays or issues early for a smooth closing.
Home Loan Step #4: Get Pre-Approved
Once lenders have received all the documentation, they review everything to calculate the approved purchase price, down payments, and which loan programs are available and competitive. Homebuyers will then get a pre-approval letter that specifies that income, assets, and credit have all been verified. Once homebuyers have been pre-approved, they are ready to work with a real estate agent and start the house hunt. Getting pre-approved can help you pick your ideal mortgage type, get your paperwork in order, and enhance your opportunities of getting a home loan.
Home Loan Step #5: Lock In Rate & Final Approval
Once the seller accepts an offer, homebuyers will want to get the signed contract to their lender as soon as possible. Once the contracts have been signed, homebuyers can then lock in their rate and closing costs.
Home Loan Step #6: Get Loan Docs
After the lender packages the loan application and documents they submit it to an underwriter. The underwriter will review the entire loan applications with a fine-tooth comb and give the final approval and clear to close for homebuyers.
Home Loan Step #7: Closing
Closing the loan is the last step in the homebuying process. All the documents will be reviewed and signed by the closing agent. The seller executes the deed to the property, and the funds will be paid to the appropriated parties.
Once homebuyers have signed everything and the funds are disbursed, they receive the new home’s keys!
This blog covers the basics of the 7 steps to get a home loan. To learn more about getting pre-approved for a home loan to start your homebuying process, contact one of our Mortgage Analysts. Our expert team is available 7 days a week by phone at (855) 855-4491 or by email at [email protected].