The Mortgage and Loan Process
The majority of homeowners fund the purchase of their home by borrowing money from a lender in the form of a mortgage. Below are the steps in process of obtaining a mortgage:
1. Financial Pre-Qualification or Pre-Approval
• Application and interview (often times performed over the telephone)
• Buyer provides pertinent documentation including verification of employment
• Credit report is requested by the lender
• Appraisal is scheduled for the buyer’s current home, if there is one.
• Loan package is submitted to an underwriter for approval
3. Loan Approval
• Parties are notified of approval
• Loan documents are completed and sent to title company
4. Title Company
• Title examination, insurance, and title survey are conducted
• Borrowers come in for final signatures
• Lender reviews the loan package
• Funds are transferred electronically
Why should you pre-qualify?
• We recommend that our buyers get pre-qualified before beginning their home search.
• Knowing exactly how much you can comfortably spend on a home reduces the potential frustration of looking at homes beyond your means.
Are you a first-time homebuyer?
You should check the Texas Department of Housing and Community Affairs’ website: www.myfirsttexashome.com.