Pre-Approval
- Why it’s important: Pre-approval gives you an estimate of how much you can afford to borrow, making you a more serious buyer to sellers.
- How to get pre-approved: Contact a mortgage broker (like us!) and provide them with your financial information, including income, debt, and assets.
- What documents you’ll need: Pay stubs, tax returns, bank statements, and proof of employment.
Application
- Completing the application: Fill out the mortgage application form, providing detailed information about your finances and the property you’re interested in.
- Understanding loan types: Learn about different loan options, such as fixed-rate, adjustable-rate, FHA, and VA loans.
Underwriting
- What is underwriting? The process of verifying your financial information and assessing your risk as a borrower.
- What documents will be reviewed? Lenders will review your tax returns, pay stubs, bank statements, credit reports, and appraisal.
- How long does it take? The underwriting process can take several days or weeks.
Closing
- What happens at closing? You’ll sign a stack of documents, transfer funds to the seller, and receive the keys to your new home.
- What documents will you need to sign? Closing documents include the mortgage note, deed, and title insurance policy.
- How much will you need to bring to closing? You’ll need to bring a check for the closing costs, which can include property taxes, insurance, and fees.
Post-Closing
- What happens after closing? You’ll start making your mortgage payments and maintaining your new home.
- How to make your mortgage payments: Set up automatic payments to avoid late fees.
- Understanding escrow accounts: Escrow accounts hold funds for property taxes and insurance.
- Keeping your mortgage in good standing: Make timely payments and avoid excessive debt.
Remember, the mortgage application process can seem overwhelming, but with the right guidance, you can navigate it successfully.
