The fact that you have landed on this page shows that you have decided to buy a house. So now, the next step is to apply for a home loan and then proceed further. But how do you start the process of getting a mortgage loan? Don’t worry, APW Finance is here to help you out.
This article is your go-to guide for getting a home loan.
The Home Loan Process:
We strongly recommend all homebuyers get a pre-approval for a mortgage first. The idea behind this is to have complete knowledge about how much a lender would offer before he quotes the rate. If pre-approvals are not there, no one will take you seriously and not give much of their valuable time. So, pre-approval is essential.
Prepare Your Documents
You need to prepare all the essential financial documents regarding your assets, debts, employment proof, income, credit history, and everything that justifies your financial condition.
The documents required are:
- Bank Account Statements
- Investment Portfolio Statements
- Retirement Statements
- Stocks and Bonds Account Statements
- Gifted Funds Receipt
- Current Mortgage Documentation
- Outstanding Debts Verification (all related documents)
- Credit History Verification (all associated documents)
- Auto Loans Documents (if any)
- Student Loan Documents (if any)
Determine Your Budget
You need to fix a budget for a loan. Your pre-approval letter will give the amount you are eligible to borrow. But that doesn’t mean that you should borrow the whole amount. Check for a comfortable monthly repayment amount through a mortgage calculator and then fix up the loan budget.
Start House Hunting
Now comes the best part, house hunting. Based on your budget and your requirement, start looking out for a house that fits your parameters. Make a strategy and begin covering areas offering homes at your desirable rates. Then start shortlisting them as per your liking and requirement.
Make An Offer
It is time to make an offer once you have found the perfect house. Contact your real estate agent to write a purchase agreement, which contains your offer price along with the things in the home you need and would like to purchase. All of this would be negotiable, but still, it is essential to mention in the offer.
Finalize The Loan
Now, you are ready and eligible to apply for a mortgage by completing the loan terms after you have bound your offer legally. Paperwork follows this step as a part of the final documentation.
Wait For Underwriting
The purchase agreement is sent to your banker the moment your offer is accepted. To ensure that you opt for the right loan program, the banker would again review all your options. After the banker approves it, your loan goes for underwriting. During this waiting period, all the verification and checking of the documents, mortgage, and assets occur. The bank would ask for any additional documents if required.
Get The Property Appraised
As the underwriting process is going on, your lender would set up home appraisals to protect you and the lender by verifying the price of the agreed home.
Prepare To Close
The time for closing the table has arrived once the underwriting process is completed. You will finally take possession of the deed after submitting the Closing Disclosure, Photo IDs, Down Payment, and signing the mortgage.
This is the whole process of getting a home loan. We hope this guide was helpful. You can contact APW Finance for any queries or for the home loan too.
Experienced Director with a demonstrated history of working in the accounting industry. Skilled in Tax Preparation, Self Managed Superannuation Funds (SMSF), Accounting, Income Tax, and Tax. Strong professional with a Master of Applied Finance focused in Taxation from University of Western Sydney.