Congratulations! You have probably decided to take the leap and buy that home you have had your eye on forever now. It’s not every day that we take steps as big as these towards our future, and when we do it’s worth celebrating. This accomplishment is one that comes with a lot of responsibilities such as applying for a mortgage. This is by far one of the most daunting parts of the home buying process, but it doesn’t need to be as scary as it sounds. Here at Ace Mortgage, we are here to help you out by giving you tips and advice on how to successfully apply for a mortgage. With our help, we know you will be able to handle the mortgage with as little stress as possible.
The Mortgage Application
Step one in the process isn’t so bad; it’s a simple application. Something we have all had to fill out at some point in our lives. Although, this application is a little different than most of the ones you have seen before. It’s going to require a few things that you are going to want to prepare for. Some of the items on it are going to be credit score information, making sure it is high enough and is free of any errors before doing the application is key. You are also going to want to go into the application knowing what type of mortgage you are looking at. The application itself should take about an hour, give or take, and will ask general questions about your finances, employment history, any assets you may have if you have any debt, and about the mortgage type you want and what property you have your eye on.
Loan Estimate
This is the part where having good credit and no debt will work wildly in your favor. You are going to want to find a lender at this point, keep in mind there are many out there so look at how they match up to your needs. The lender you choose will request your credit information, as long as you give them your permission, and should give you a loan estimate form in 3 days or less. This form will contain information on the loan, mortgage, property tax, closing costs, and more. There are going to be A LOT of numbers on this form and even more information on what you are going to be expected to pay. Don’t let this overwhelm you, your lender is there for you so feel free to ask any questions and take your time reviewing everything. Once you feel comfortable with proceeding you can then commit to the lender and all of the information presented to you.
Loan Processing
At this stage in the process, you are going to be asked many questions about the information on your application. It’s going to feel like an interrogation at some points but trust us; it will all be worth it when you are moved into your dream home. This will also be a lengthier step and should take less than a month but more than 2 weeks.
Underwriting
On the bright side, you are done with the interrogation and have reached a step that will only take a few days. This is worth celebrating, as you are one step closer to your goal. This is also the step with the least amount of effort on your side. You are going to be expected to do nothing unless more documentation is needed.
The Loan is On the Way to Closure
This is the last step; you have made it so far! If you have made it this far it means that your loan is on its way to being closed. Your lender should present you with a closing disclosure with all of the final numbers on it. These numbers should look pretty similar to what you were shown before; however, if they are drastically different you should talk to your lender about your concerns. If you are happy with the numbers and believe they make financial sense then you are good to proceed and claim your hard-earned loan. Congrats!
At Ace Mortgage we know just how confusing and overwhelming the loan application process can be. This is why we are here to help you every step of the way. If you have any questions about applying for a loan or about your mortgage in general, give us a call at (954) 906-6620.