10 Easy Steps to the Loan Process
Posted by Gail Medina
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The Loan Process made simple....
In 10 Easy Steps
(plus, interest rates for home loans have recently decreased to 4.1%... even more reason to get on the bandwagon and get pre-approved today!)
The loan process can seem daunting at first... however, it doesn't have to be!
There are two main people you need to have on your side to ensure that this process is stress-free:
• Realtor
• Loan Officer
There is also one main rule that must remain consistent though-out this whole process:
Make Zero big purchases. In other words, do not go out and buy a whole new living room set for your new home-to-be. Continue to use your credit cards for daily necessities (gas, groceries, bills, etc...). Planning a big vacation out of town? Cancel it!
Here's a simple check-list to get you focused on the one thing that will determine the house you will be able to buy.
Loan Process in 10 Steps:
1. Application & Credit Review for Pre-Qualification - Connect with a Loan Officer and find out your purchasing power.
2. Gather all requested documentation - each lender has a Borrower Checklist; commonly listed are: W-2 forms, paycheck stubs, current bank statements of all bank accounts and copy of driver's license.
3. Start the Loan Process Early So You shop with Peace of Mind!
4. Find a Home! Your friendly Realtor will assist in finding you the perfect home as well as will assist in negotiations of price and/or terms & conditions of the contract. He/She will order and Inspection of the home/property once a contract has been submitted/accepted.
5. Complete Loan Application & Begin Underwriting Review - Your loan officer will order a home appraisal.
6. Open Escrow with Preferred Title Company - Your loan officer will often take care of this part... worry free!
7. Processing Department - Loan officer prepares files, verifies/reviews employment & all documentation.
8. Update Calls* - Loan officers informs the borrower and Realtor of updates through weekly calls. (varies upon loan officers)
9. Underwriting Department - Approves the loan, makes one last check of employment & finances. Again, DO NOT spend great sums of money on anything. List of "anything" includes but is not limited to: cars, boats, motorcycles, bicycles, golf membership, Texan Football season tickets, Disney vacation, Las Vegas gambling spree, Bed & Breakfast weekend stay-cation, dinner at 3 star, 4 star or 5 star restaurants, jewelry, couture shoes or handbags, round of drinks at your local pour for your colleagues and/or everyone at said pour, personal trainer and hot air balloon rental.
10. Closing documents are sent to Escrow Office for you to sign. Loan funds & records are filed with the County. Your key to your new home is now in your hand! Commence to buying a new bedroom set for your new home... and go ahead and buy those season tickets - GO TEXANS!
Loan Process Steps courtesy of Loan Officer, Chris Fewell, of Network Funding, LP. (713) 501-8134 .
Elaboration of Loan Process Steps courtesy of Realtor, Gail Medina, of Intero Real Estate Services. (281) 832-6482 .
* Chris Fewell makes his weekly update calls every Tuesday.
With interest rates so low... it would be crime not to get pre-approved!
Call Chris today!
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.
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