7 Steps To Getting Your Home Loan Funded
Interested in buying a home? What steps do you need to take to get approved for a purchase mortgage and get your home loan funded?
Buying a home is one of the most rewarding moves most individual will make in their lifetimes. However, there can be more to the process than most first time home buyers realize. Being prepared is 90% of the battle. Understanding what to expect from the process will go a long way towards streamlining the process of getting your purchase mortgage loan approved and funded. It will prevent sleepless night in the process. Perhaps most importantly of all, it will help ensure you secure a home loan you’ll be happy with, and that will serve you well for years.
Do Your Math
Lay a great foundation by determining what you can afford. Decide the maximum you can afford to put down as a down payment and for closing costs on your new home. Decide how much you can comfortably afford in total monthly housing payments. Make sure to leave room for things like insurance, utilities, lawn care, and basic maintenance.
Get Your Paperwork Together
Expect lenders for home loans to want everything you can must on your financial and employment status. Having this together in advance will avoid delays, help obtain the most accurate purchase mortgage quotes, and ensure a faster real estate closing. You’ll want to gather items such as tax returns, paystubs, W2s, bank statements, and contact information for landlords and employers to get home loan funding easily.
Check Your Credit
If you are already using a credit monitoring service you should have access to your credit score and what is showing up on your credit report. If you have recently applied for other types of credit you should be entitled to a free copy of your report from the credit bureaus. Know what your credit score is to help connect with the right lenders for home loans and loan program. Address any erroneous information on your credit report with the credit bureaus and creditors to improve your score.
Shop for Mortgage Lenders
Shop around for reputable lenders for home loans, and identify those with great deals, and that offer purchase mortgage programs that are a good fit for your profile and home loan funding needs.
Get pre-qualified for a home loan with your preferred lenders for home loans. Provide all of your information, and they’ll tell you how much of a loan and home you qualify for. They will provide you with some form of mortgage pre-approval letter that you will need to go house shopping. Without this most real estate agents won’t talk to you, and Realtors and sellers won’t show you their homes.
Find a Home
Go house shopping. Choose the property you love. Negotiate a great deal, and get your purchase contract signed.
Make Your Mortgage Loan Application
Make your formal loan application, and follow the transaction through to closing. Get in any additionally requested paperwork fast. Get inspections done fast. Make sure you are ready for the closing including valid government issued IDs, and have available cash to close.