How to Start the Mortgage Process
Purchasing a home can be a little overwhelming if you’re not familiar with the mortgage process and don’t know what to expect. If you’re wondering how to get started, the best thing to do is to educate yourself on the whole process and don’t be afraid to ask questions.
First, you need to prequalify for a loan with Metro Brokers Financial to find out how much you may be eligible to spend on a home. This will help you determine what price range to look at when shopping for a home so you don’t waste time. The prequalification process involves answering a few simple questions that helps the lender determine whether or not to move forward to the application process.
A few of the things the lender will want to know are the type of home you plan to purchase, approximate cost of the home, how much you'll want to borrow, the type of loan you want, as well as personal identification information, financial and employment histories, credit history, etc. At this point, this typically does not require any authentication or documentation until the mortgage application process begins.
2. Mortgage Application Process
It's usually after the prequalification has been done that your Metro Brokers Financial mortgage consultant works with you to complete the application. This includes determining the type of mortgage required and locking in an interest rate. An application fee is often required at this point, and sometimes your lender will have online tools available to check on the approval status of your application.
Check out our Mortgage Application Checklist to see all of the items that a mortgage lender will require during the application and documentation process.
During the documentation confirmation phase, you'll need to supply proof of current income, assets, expenses, and employment history. Be very open and honest about all of your documentation and submit it as quickly as possible. These items are used to determine if you’re eligible for a mortgage. If anything is missing or is wrong when verified, it could slow down the process or hault it completely.
The documentation collected will satisfy the conditions required to approve the loan, and you'll be asked to lock in your interest rate and mortgage type.
4. Property Appraisal
The next big step will require a property appraisal and a title search. An appraiser will need to go the home to evaluate the property. Lenders require an appraisal to be sure the home is worth the amount you’ve agreed to pay for it. This is just in case you can’t make payments, and the lender must take over the property to sell it off. A title search is done to ensure there is no fraudulent activity.
5. Mortgage Approval
Once the loan is approved, you are in the final stage of home ownership financing. At this point, a final review of your credit accounts, income ad assets are double-checked. Make sure you DO NOT make any purchases or open any new accounts from the time of loan application to closing. Tax and interest information is reviewed, and information about an escrow (or reserve) account is confirmed. An amortization schedule is then provided to you.
The final step will be to attend the closing. You’ll sign all of the final paperwork and pay any remaining fees or costs. You’ll also receive the keys to your new home.
Your Metro Brokers Financial mortgage consultant is there throughout the process to answer any and all questions. By working with a loan officer you trust, you will be in your new home before you know it!