6 Things To Expect When Getting a Loan For A Home – Buying a home is one of the biggest purchases you will make.It’s important to make sure you are prepared for one of the most important steps, securing a loan. Here are a few steps to expect when getting a loan for your next home…
1. Pre-Approval – Before you start looking at any homes that peak your interest, make sure to talk to a lender and get pre-approved. This is where a lender will gather all the necessary information from you to determine how much you can afford. Having a pre-approval letter can show sellers you are a serious buyer.
2. Down Payment – While you are getting a pre-approval letter from your lender, you should also explore your down payment options. What’s the minimum? What are your options? Which option is best for you? This way you can be prepared for how much you want to use for your down payment.
3. Loan Application – Once you find the perfect home and are in contract with the seller, the next step is your loan application. Your lender will dive deeper into your finances, credit history and more to start processing your loan application.
4. Appraisal – To determine the value of the home you are purchasing in today’s market, your lender will order an appraisal. The appraiser will visit the home and pull comparable properties to determine it’s value.
5. Closing Costs – Ask your lender for a “Good Faith Estimate” to help you plan for how much your closing costs will be. Your closing costs include any lender fees, title, insurance, credit processing fees, etc. These fees are due at the time of closing.
6. Title Transfer – The last step to the home buying process is signing the last few documents that locks everything into place and transfer the ownership or title to you. This happens when the funds for the purchase of your home are successfully transferred and the purchase price funds are disbursed to the seller. This is when you collect the keys to your new home!
Keep these tips in mind when thinking about your home buying process! What do you think of these tips? Do you have any tips to share? Comment to share with us!