Buying A Home
How to Apply for a Mortgage - The Process
The mortgage loan process can be intimidating to many people; because it’s something you probably don’t have a lot of experience with. Knowing the steps involved and what your options are, can help take a bit of the intimidation out of the process and make it a simple and pain free solution to help you purchase the home of your dreams.
Start with Your Credit Score
It’s a single number that matters so much. Before you begin the mortgage loan process you need to take a long look at your credit report. You want to see a number that’s high and a record that’s free of late, slow, or delinquent payments. If not, look for errors in the report as well as items that you can quickly and easily clean up. This may delay your ability to buy a home for a few months but the difference in the amount you’ll ultimately pay for the home will more than make up for the delay.
Once you are satisfied with your credit score and report, it’s time to seek pre-qualification for a loan. This can typically be conducted in a short amount of time and will give you a good estimate for how much you are willing to borrow, based on a cursory check of certain information regarding your employment, pay, and credit.
Make the Loan Application Official
Once you’ve found your dream home and made an offer that was accepted, things heat up quickly. Now it’s time for the official loan application and the appraisal of the home. It’s best if you know a little about the mortgage loan options available to you so you can make the best decision. It’s a good idea to consider working with CoastalStates Mortgage, a subsidiary of CoastalStates Bank, to identify the specific type of loan that best meets your needs as a buyer. We can help arrange a wide variety of loans, including:
•Adjustable Rate Mortgages
•Fixed Rate Mortgages
•USDA Rural Housing Loans
Choosing the right loan is as important as choosing the right home so make sure you have all the facts about your options and what’s available before making your choice.
Of course, all this is contingent upon the appraisal establishing a value for the home that is equal to or in excess of the value being borrowed from the lender. After you finalize all the loan details with your loan officer, it’s time for your lender to underwrite and process your application. During underwriting your lender will first verify all the information you provided on your application. They will ensure all information is accurate and current. It is at this time that your lender will also confirm the price of the property being purchased through means of an appraisal completed by a third party. After completion, your lender will investigate additional factors that could dictate the value of the property, i.e. former liens, ordinances, incorrect boundary assessments, and similar factors.
Closing the Deal
Assuming there are no issues that arise during underwriting, your next step after being officially approved for the loan is the closing process. This includes escrow and title preparations, the paying of closing costs, signing of essential documents, title transfer and the transfer of funds to the seller. Once these things occur, you are a brand new homeowner. Congratulations!
If you have questions about the mortgage process or need some help getting started, find a CoastalStates Mortgage Loan Officer near you!