Mortgage Loan Process

The first step in applying for a home loan is to find a broker or lender and complete a mortgage application for approval.

In a purchase of a home, there is approximately thirteen entities who play a part in the loan and purchase transaction. Realtors, escrow agents, lending underwriters, processors, etc. all play a part in helping a borrower and buyer through the process of acquiring the purchase.

When applying for a loan to purchase or refinance a home, a mortgage broker will be able to offer the most choices of loan programs. As a part of the application process the broker will search the many lender programs he has available and help you choose the one that best suits your needs and financial goals.

While the loan is in progress do not change jobs or apply for more credit. Doing so may jeopardize your loan.

Knowing where to place your loan and knowing the underwriting procedures for a particular lender can mean the differnece of closing on time or not. When speaking with your loan officer you should be able to get feel for his expertise and be comfortable with the person you choose.

It is imperative that you get pre-approved for a mortgage before you begin looking at houses and working with a Realtor. First, this will let you know how much of a home that you should be looking at and can qualify for. Next, your realtor or the selling realtor will require a pre-approval letter before they will allow you to put a bid in on a house to make sure that you are sincere and can qualify for the home. Lasy getting pre-approved will give you an idea of what programs are available for you and how much your monthly mortgage payment will approximately be for the type of home you are looking for.

A very important part of the mortgage loan process is the appraisal. In a mortgage loan there are really two entities that must qualify, the first being the borrowers and the other being the property itself. The appraisal is primarily how the lender detirmines if the property qualifies or not. A Uniforn Residential Appraisal Report is a very detailed document that gives a opinion of value and much information about the property.

Advise your mortgage professional immediately of any changes in your financial or employment situation. It is best to be proactive and resolve any issues before they become a problem.

» DISCLAIMER: The information contained in this article on 'Mortgage Loan Process' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.