American Property Financial Blog

When you decide to buy a home, I can only imagine how many questions run through your head. What is our spending price point? How do we begin the loan process? Do we go to a bank or broker?, etc. It's understandable that the process can be overwhelming and knowing where to begin can be challenging. As a loan processor,  I constantly work with borrowers that are in various stages of the home-buying process. We recognize actions to further take to alleviate homebuyers. Here are our suggestions to help YOU prepare for the mortgage loan process.

 

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1. Time is of the essence! So give yourself plenty of it!

Having a strong financial backbone is key when you begin the home buying process. Allowing yourself a minimum of 6 months to prepare is not a shy estimate.  If you have large amounts of debt to pay off whether from car payments, school loans, or credit cards make it a goal to have a large percentage paid off.

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2. Go out there and get pre-approved!

Whether it'd be a broker or bank, consult with various lenders to find out what your loan amount could be and know a rough estimate of your monthly payments. While doing this, definitely chose someone who is pleasant to work with. You will actively be in contact with one another for an extended period of time.  From there the lender will discuss your financial history, pull a credit report, and put you in the forefront to hopefully becoming pre-approved!

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3. You're approved and documents are needed!

This is where the fun begins and your organization skills are put to the test because documentation will be asked of you. To begin you will be asked to provide forms of identification (drivers licenses, social security cards), tax returns, and bank statements just to name a few. Most importantly, keep copies for your records of any forms you sign, and touch basis with the realtor, title company, and lender to make sure everyone has what is needed as the home-loan process moves along.

 

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4. Closing Time

First and foremost, do be aware that closing costs could be incurred and this is separate from the initial down payment and does vary by where you live.  From a loan processors prospective, getting ready to close is a period of craziness for us (the mortgage broker), lender, title company, and realtor exchanging in a communication frenzy. As a borrower be ready to proceed quickly as a closing date and time are set, remain patient and in contact with everyone, but most importantly be EXCITED & PROUD. You made it through your first home-buying experience!!!!!

 

 

 

 

 

 

 

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