| Real estate professionals and
mortgage lenders recommend "pre-qualifying"
for a loan before selecting a home to purchase. This process
will help you: |
| • |
Determine the price range you can afford.
|
| • |
Understand the types of loans you qualify
for. |
| • |
Help to determine what your monthly payment
will be. |
| • |
Estimate the down payment and closing costs.
|
| • |
Help your Realtor find you the best home
possible in your price range. |
Application
All pertinent documentation is obtained. Fees and down payments
are discussed, and the borrower will receive a Good Faith
Estimate (GFE) and a Truth-in-lending statement (TIL), itemizing
the rates and associated costs for the loan.
You will be asked to provide certain documents to your lender
in order that your loan can be processed in a timely manner.
Loan Submission
Once all the necessary documentation is in, your completed
file is submitted to a lender for approval.
Loan Approval (Underwriting)
Loan approval, or underwriting, generally takes 24 to 72 hours.
All parties are notified of the approval and any loan conditions
that must be received before the loan can close.
Closing
Once all parties have signed the loan documents, they
are returned to the lender. If all the forms have been properly
executed, the lender sends the loan funds by wire transfer.
At this point, the borrower finishes the loan process and
actually buys the house.
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