Home Loans

Home Loans

Securing a home loan is the most important step in the home-buying process. Spend some time to get to know the prices of other homes in your neighborhood. Have the property inspected by a licensed home inspector.

In order to finance or refinance a loan the lender requires documentation to verify and substantiate your employment, financial situation, credit to assure its investors that you have the ability to repay the money. The documentation may consist of tax returns, bank statements and any other information the lender deems necessary. The loan agent will be the intermediary between you, the borrower and the underwriter. The underwriter will either approve the loan as it is or, more likely, provide a list of items that need clarification. It typically takes two and four weeks, possibly longer for the entire loan process, depending on the circumstances of the loan. Once the loan is approved, the loan papers will be sent to the escrow/title of the company. The escrow officer will contact you to set up an appointment for you to come in and sign your papers. They need to provide you a copy of everything you sign. From the date you sign the papers, it will be another two or three days until the loan is funded, which is when the money is transferred. Once the loan is recorded, the transaction is complete.

Tips

• Check current interest rates listed in your local newspaper, ask friends, speak with local real estate agents or search online.
• Compare the rates and ask for details on the same loan amount, loan term and type of loan from multiple lenders.
• Fill out a loan application.
• Know if the interest rate on your loan is fixed or variable.
• If the loan is an adjustable rate mortgage loan (ARM), you need to know when and how the interest will change and how this will effect your repayment.
• You need to know how much down payment is required for the mortgage.
• When you select a lender, you may have to explain in writing why there are other inquiries on your credit report.
• Remember that money received from a lender will show up o your credit report, and your payments will factor into your debt-to-income ratio.
• Be aware that the lenders and brokers are often allowed to keep the difference between the lowest available price and higher price that the consumer agrees to pay for the mortgage.
• Bring your driver’s license or some form of identification, when you go to sign your loan papers.
• Be prepared with all your financing questions and negotiate for the best deal possible.
• If you are a first-time home buyer, you may qualify for a lower down payment or interest rate.