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Sunday, August 20, 2017

The Loan Process and Getting Into a Home

 RANLife Home Loans - Utah's Best and Most Reliable Lenders


There are 5 main steps in the mortgage loan process. Read below to learn how to prepare and what to expect. Your real estate Agent will help you through each step, as will your Lender. Still, knowing the steps will greatly help you navigate the process and stay on track.

1. Pre-Approval Process
When looking to purchase a home, most Seller’s Agents will request that potential buyers be pre-approved by a mortgage Lender, often requiring a lender’s pre-approval letter before accepting an offer. In a competitive seller’s market, where there can be multiple bids under review, your pre-approval letter can help your offer be accepted more quickly and ahead of other buyers. Your pre-approval letter helps you know your maximum loan amount and total purchase price.

Your Agent can provide you with a trusted Lender based on your needs and expectations. During your pre-approval process, your Lender will need specific documents. Being responsive and timely will greatly assist your Lender and allow for you to stay on track with your timeline. 

Once you are pre-approved, you can get on to the fun stuff - house hunting with your real estate Agent! Looking for a Lender? Call us today to get pre-approved fast. (800) 461-4152 https://www.ranlife.com/

2. Mortgage Application Process
Once you find a home, submit an offer, and come to an agreement with a signed Real Estate Purchase Contract (REPC), you are ready to really get the ball rolling with your mortgage loan application. Your REPC will outline key dates that you and the seller must meet to keep the contract valid. One of these key dates is your Financing and Appraisal deadline. You and your lender are responsible to have your mortgage loan approved and the home appraisal completed on or before the deadline. Your lender will help push this timeline and will be in regular contact with you for all documentation needed. Be patient during this process as there can be a lot of paperwork needed to verify your employment, annual salary, current assets and debt, and any discrepancies in your information.

All of this documentation is used to produce a Loan Estimate, outlining all estimated costs, fees, interest rates, and any charges associated with your mortgage loan. At this stage, you are not yet approved for your mortgage loan.

3. Mortgage Loan Processing
Mortgage loan processors review all the information in the loan file submitted by your Lender and prepare an organized and complete package to submit to underwriting. This process includes ordering your credit report, verifying your employment, ordering the home appraisal, and ordering a property title search.
4. Underwriting Process
The Underwriter will closely evaluate the file and all documentation in the loan package, including verifying all information and double checking for accuracy. The property is also evaluated in the Underwriter’s decision to either approve or deny the loan.
Once everything is reviewed, the Underwriter will either approve or deny the loan application. Assuming your loan is approved and there are no issues with either the loan or the appraisal, you will be notified by your Lender. After getting approved for your loan and before closing on your home purchase, your Lender will lock you into your interest rate. Rates change daily, although minimally. Once approved for your loan, you are ready to move to closing on your home purchase.
5. Mortgage Closing Process
You’ve made it through the loan application process! In preparation for closing, your loan documents are sent to the title company and a copy is also provided to you for review prior to closing. Your title company will provide you with a final Closing disclosure that includes all the details of the REPC and your loan. Review everything carefully to ensure accuracy. You have three days to review your Closing documents and advise of any changes needed. Be prepared to pay anything at closing that is stated on your Closing disclosure and not part of the mortgage loan. The Closing documents will clearly state that amount. Talk with your Lender and Agent if you have questions about what will be due the day of closing. Once approved, you and your real estate Agent do a final property walk through with 24 hours of your closing.
At closing, your real estate Agent will sit with you and walk you through all of the paperwork you will need to sign. Your Lender may also be present, as will your Escrow Officer from the title company. You will need two forms of picture ID to sign all final documents. Your closing can take some time to sign documents and answer any questions. Once done with your closing, be sure to keep copies of all documents signed, including your Closing disclosure, promissory note, and deed of trust. From here, your title company will complete the funding and recording of the purchase. Your title company will then notify your real estate Agent that the home is now officially yours. Congratulations on your home purchase!
Hopefully this helps you feel more confident in the process and better prepares you for each step along the way. It is a very exciting time with a lot of moving pieces.Your Agent will help you navigate the full home buying experience.
Looking for an Agent? We can help you there! Call today. (801) 478-4545 http://www.ranliferealestate.com/
 RANLife Real Estate - Utah's Most Experienced Team


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