We always want to make sure that our buyers have a better understanding of the lending process it can be very hard to understand sometimes and a little stressful at times.
Below are 10 basic steps to the lending process, each of which is described here in top-level detail. Being well-prepared helps ensure a smooth lending experience. It’s important to us that you feel fully empowered and informed when it comes to making decisions about your home loan. With that being said, let’s begin!
A pre-approval letter enables you to confidently search for a home that you can afford based on your credit, income and assets. Pre-approval is started by submitting an online, in-person or over the phone application. Your mortgage professional will also need supporting financial documents and disclosures signed electronically.
2)Searching For Your Home
Once pre-approved, you then start shopping with your real estate agent. When you decide on a home you want to purchase, the terms of sale are negotiated and your agent presents your offer to the seller.
3)Selecting Your Loan Product
After you’ve submitted an offer with your real estate agent, and the seller accepts your offer, you then contact your loan professional to formally apply for financing on your new home. Additional docs and disclosures may be required before locking, then it’s on to loan processing.
4)Home Inspection & Appraisal
After your offer is accepted, but before you finalize your purchase, a home inspection is performed to make sure the house is in good condition. If the property is deemed to be acceptable, an appraisal is ordered to determine the fair market value of the property.
Your loan processor reviews the entire loan file and sends all pertinent information to underwriter for final approval. The underwriter makes sure that you are in good financial standing, and that all tax, title, insurance, appraisal and closing documentation is satisfactory.
In-House Decision Making
6) Final Loan Approval
The underwriter will review and clear each of the items they requested during their review. If all underwriting conditions are met, the loan is approved and you proceed to closing.
7)Loan Documents Sent for Signing
After your loan has been approved, The lender will work up final loan documents and send them to the closing company. The closing agent will prepare your final documents, as well as the seller’s. The closing company will make arrangements to obtain signatures on these papers either through a mobile notary or at the closing office.
8) Loan Funding
Once docs are signed, they are sent back to lender for final verification. Upon approval, your loan funds are wired to the closing company and any residual monies due from you will need to be provided to the closing agent via a wire transfer or cashier’s check. All funds are then distributed by the closing company.
9) Confirmation of Recording
The final documentation step is the recording of the Deed of Trust and Warranty Deed in your name by the county clerk. Once this is done, you are the proud new homeowner of the property. Keys will likely be provided by the real estate agent.
Congratulations!You can move into your new home!
We work very closely with some AMAZING lenders to make this process as easy and clear as possible.
Happy House Hunting!
Author:Amy Mingo Phone: 208-308-0105 Dated: August 25th 2015 Views: 2,063 About Amy: ...
View our latest blog posts in your RSS reader. Click here to access.
Along with being a Realtor/Broker I am also the mother of 4 very busy girls. If you are new to the Magic Valley, I can get you all the information on sports, dance, drama, city leagues, AAU teams, advanced scholastic clubs and just about anything else as we are involved with them all. I joke about the fact that I am a Realtor from 8:00 to 3:15, Taxi Driver from 3:15 to whenever, private chef on the weekends, that is when I make all the meals for the next week, tutor, house cleaner and yes of course last but not least a wife. I believe that my life skills are what make me a great Realtor . I know and love the Magic Valley as it has been my home for most of my life. I do have hobbies that I enjoy such as gardening, that does not mean I do not have weeds,!!!! My husband and I enjoy running, biking and skiing when we can find the time. My best asset is my time management, I make every minute count. My clients love the personal service and the time I give them to make sure every aspect of the home buying or selling process goes smoothly. I also pride myself on the fact that you can reach me or one of my partners at most any time, “Blue Tooth is a wonderful thing”. I love that my career as a Realtor allows me to do 2 or maybe 3 things at once!! If my clients have questions at 10:00 at night I hope they would feel comfortable enough to call or text me so I can help them get a good night sleep. As the Broker/Owner of Idaho American Dream Realty I have the opportunity to run the kind of real estate office that I would want to buy a house from. We consider ourselves a “boutique office” small enough to know all of our clients as friends but large enough to have all the latest technology, know all the new trends and have time enough to put the perfect plan in place for you. I can’t do all of this by myself so I am so blessed to have a great staff that works to make sure all your needs are met. Enough about me…email or call us and let us know what you are looking to do and we will get to work. This is where action speaks louder than words kicks in. I hope to work with you soon.
"We had been using another Realtor when we contacted Laura off of Zillow. She did not answer her phone how ever she did text us that she would call us when she was finished with her clients. We had a call back within 20 minutes and she gave use more history on the home we were looking at than our agent that showed us the home, he told us that the house had no past sold information and that there was no way to find out if the home had had insurance claims filed. We went on line hoping to get more information from the listing agent thinking it was Laura only to find out she was not the listing agent but within 30 minutes I had an email with everything we wanted (including the 6 flood claims that had been filed on the house) plus the last 2 sales prices and the comps from the neighbor hood for us to look at. We decided not to buy that house and also to work with Laura and her team. We LOVE Idaho American Dream Realty. They were amazing to work with and I would never buy another home with out them."