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The
Loan Application
Process
Securing a real estate loan
from any lender entails seven steps:
- Prequalification (or Pre-Approval)
is the process of gathering information about your income and
debts and making a determination about how much money you will
be able to borrow. With pre-approval, lenders can commit to write
your loan for a specific amount.
- Application - A mortgage application
is completed with the help of a loan counselor. All fees and
down payments are discussed. You receive statements detailing
the terms of your loan and the costs of obtaining your loan.
- Opening the File - the lender orders
a property appraisal, survey, and credit reports, verifies your
employment or income and secures any deposits needed.
- Loan Processing - the lender reviews
your credit reports and may help resolve credit issues. The property
appraisal and survey are reviewed and any problems with them
are resolved.
- Underwriting - An appropriate source
for your loan is chosen and the application package is submitted
to them.
- Pre-Closing - The title insurance
is ordered and approval contingencies are met. The time for closing
is scheduled.
- Closing - The loan is finalized,
the documents are signed, and you actually purchase the property.
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