Introduction
Getting a loan for home purchasing is a healthy venture that most home buyers embrace. There are some people out there who wonder on how to get this loan to purchase a home. Getting loan for home buying entails some simple steps that all purchasers employ. These are the various steps to follow when getting home buying loan.
Step 1
To start with, you should ensure all your necessary documents are in order. These include credit and financial information, employment verification and bank statements among others. Then, look for the best loan for home lender out there. You could seek help from friends and family or the real estate agents. These people recommend the best lender for you and one that offers good interest rates and closing costs.
Step 2
This is followed by filling out a loan for home application form. The form is provided by the lender you choose from. This form contains fields for proof of employment, financial information; bank statements and you credit information. The same form provides space for the amount of loan you are applying for.
Step 3
The next step involves the good-faith estimate. This is provided by the loan for home lender after they review your application. The good-faith estimate is what summarizes the closing cots and interest rate. You should ensure getting this estimate and go through the costs, terms and conditions for the loan. You should also look at the down payment to make, the rate of interest and loan repayment duration.
Step 4
Loan for home lenders allow for negotiation of terms and costs. This is after going through the good-faith estimate and you feel some terms are harsh. The lender could allow you negotiate the closing costs and other loan terms. You could also negotiate on the interest rate. Closing costs and interest rates are the most critical factors to look for in home loan.
Step 5
After negotiating, the other work is left for the loan for home lender. This is the loan approval process that checks on some points. The lender checks on your credit record and the value as well as title of the home you are purchasing. This process could involve processing fees payment, credit check and appraisal payments.
Step 6
You should then wait for the approval of your loan for home buying. This is after the lender considers your application details. At this point, you should expect either approval or denial. If no errors occurred in your application, the loan is approved and closing dates listed.
Step 7
Step 7
The approval is then followed by tying up the pre-closing details. This step involves securing a check for down payment and closing costs with the cashier. Homeowners insurance is also mandatory at this point and should be obtained. You should also acquire some copies of the loan for home purchasing from the lender. Closing the transaction involves meeting an Attorney. This is whereby the proof of Homeowners insurance is required. You also pay any amount you owe the seller, such as rent and tax, and the seller does the same. Lastly, the house is transferred to you after signing the loan for home or mortgage.
