Most people spend months figuring out a house they want to buy. The next obvious step is to choose a home loan. You can choose for a fixed-rate mortgage or an adjustable-rate mortgage, and in case of adjustable-rate mortgage (ARM), there is the choice of traditional loan or a hybrid choice, where the ARM has a fixed rate for a specific period with variable interest rate later. The good news is you can apply for mortgage online. In this post, we are sharing a few details on applying for a mortgage.
- The first step in the process is to submit an online application, which includes details about the selected property, your debts, assets and income. You will be asked to submit and show all the relevant documents, such as tax filings, bank statement and employment records.
- The lender will them access and evaluate your application to understand everything about the property and your financial status. You can expect the loan estimate within a week, with all additional charges and expenses. The document will also mention the monthly payments.
- The third step is to evaluate the property for the price and market value, and this is called home appraisal. The condition of the property, the location, income from similar homes and other details will be considered for the process of evaluation.
- Finally, the lender will review the loan application with the home appraisal details to decide on whether the loan can be granted. An underwriter is required at this step. If the loan is approved, a final date will be set for closing. The interest rate can be locked in 10 days before the closing date.
- The final step is closing of the mortgage loan. You are required to evaluate every aspect and read the entire document and relevant papers carefully. The terms and conditions of the mortgage has to be clear, and if you don’t understand something, ask the experts from the lender or hire a loan expert.
Applying for a fixed or adjustable-rate mortgage is easy these days, but most prospective homeowners refuse to pay time and attention to the details. This is an investment that may have a large impact on your financial status in the future, so do your homework and select a lender that you can rely on, both for approval and transparency. Check online for mortgage lenders now and find more on the application process.