Successful Home Loan Processing:In case you are a first time home buyer, second timer, third, or maybe you want to refinance; home loan processing can be a daunting experience.
Successful Home Loan Processing:You need to be knowledgeable enough regarding the home loan procedure on how it works so that you are aware of it. However, the home loan processing depends on the difficulty of the situation.
Successful Home Loan Processing:The process will take several days up to a couple of weeks. But to give you some idea about the process, below are the steps that could help you in a successful home loan processing.
Step 1 – Meet with your mortgage broker Call your mortgage broker and set a time in which you can meet or perhaps you can visit the company and apply for a home loan. In the consultation process, your mortgage broker will help you and discuss things needed on your home loan. Most conversation includes home loan rate and features that are helpful in your financial needs. Once the loan is selected, the process of loan application begins.
Step 2 – Apply for a home loan application Your home loan processing is not a problem and will go smoothly once you completed the home loan application. You need to provide all the required documentation during the time of application.
Here are the needed details when applying for a home loan;
• Credit Report It is very important to get credit reports from the credit bureaus. However, you need to check the information. Mostly, credit reports contain incorrect information and this incorrect information can create a higher cost of rates. According to study, credit reports contain at least 40% errors. Any wrong entries need to be changed and corrected immediately.
• Credit Standing This is composed of your credit card balance, outstanding bills, and other information. This is needed before applying a loan.
• Credit Accounts This is very important when you are applying for a home loan because your credit account can make a big difference. So, to make the lender not suspicious, avoid first closing your current account or perhaps applying for a new one.
• Down Payment To make fast approval on loan, you need to put a big amount of cash for the down payment. You need to bear in mind that the borrower with a good credit history are easily approve depending on the amount of down payment. In case you have a less credit standing, the amount of your down payment plays a significant role. Step 3 – Order the document You will need to order the document from the loan officer and other documentation need for the said loan. The documents include the authorization of the borrower, income tax return, and loan application. These are needed to process your loan.
Step 4 – Wait for the documentation The waiting period of the documentation of your home loan depends on the lender and the transaction. The underwriting condition usually takes from around 2 to 5 days. You must also receive a conditional approval that your loan has already approved but subject to other additional documentation to meet. Sometimes, it takes several days or up to one week to wait for the documentation to process.
Step 5 – Submission of loan The most critical part in home loan processing is the submission of your loan. All the required documentation will be submitted to the lender together with your appraisal and the credit report. These documents are important for approval of your loan.
Step 6 – Approval of loan Approval of loan usually takes around one week because the process depends on the market. If the market is busy, then it takes a bit longer to approve. However, sometimes the approval depends on the lender. In case your home loan needs mortgage insurance, or the investors need to review your files, then the final approval takes time. You cannot get a final approval unless all the participating parties have signed the loan.
Step 7 – Fund issuance Once all the needed documents are already signed by both parties and already returned to your lender, these documents are reviewed to make sure that they met all the requirements. Once completed, you are then issued money for your home. Once you have received the money, you can now buy a home that you want. Home loan processing is not quite difficult if you are familiar with the process. In fact, this can be fun too!