It is an exciting time for you if you are thinking about applying for a home loan! And we have good news for you – getting approved for a home loan is a lot less intimidating than you may anticipate.
To start off, we would recommend that you get pre approval from a lender to begin the process. This letter will give you a realistic idea of what you can afford for a home. Having a pre approval letter also gives you an edge in this competitive market. We have discussed the pre approval process before. But to reiterate quickly, it is a fairly easy and quick process. Once you decide on which lender you want to use, you complete an online application. The application should not take more than twenty minutes and will require a variety of documentation that you will need to submit. Since pre approval letters do carry an expiration date on them, you may need to have your letter renewed several times if you do not find a home right away.
The next step in the process is to actually fill out an application once you find a home you wish to purchase. When you are ready, it is wise to apply to a handful of different lenders to make sure you get the lowest mortgage rate available to you. It is possible that you save a great deal of money by simply shopping around. Keep in mind that you do not have to use the lender you obtained a pre approval letter form.
The final step in this process is to obtain a final approval from the underwater. It is in this process that a lender reviews all of the necessary documentation provided, along with performing credit checks, etc. If there are any questions that need to be addressed or more information that may need to be provided, your underwriter will get in touch with you to clear up any concerns or questions they may have.
As you can see, once you break everything down, the process is not as intimidating as you may have initially anticipated!