Loan Process

1. Plan and Gather Information

2. Get Preapproved

3. Shop Around for Best Deals

4. Apply for a Loan

5. Get Loan Approval

6. Close the Loan

1. Plan and gather information

Gather all the information and supporting documentation you'll need to apply for a loan pre-approval or to submit your mortgage application. It is crucial to gather the financial data that will enable you to prove to lenders that you are a good credit risk. Getting ready ahead of time and having all the documents on hand when you visit the lender will help the process move along quickly and smoothly.

• Check your credit report and score, clean up errors that affects your credit score.
• You can increase your chances of obtaining that loan if you begin to lay the groundwork before you need the money.
• Prepared loan applicants lend a lot of credibility to what they're doing,

2. Get pre-approved

Consider getting pre-approved for your loan before you start shopping for a home or a car. With pre-approval, you’ll get written confirmation of a maximum loan amount - so you know just how much you will be able to finance. This confirmation can help increase your bargaining power with the seller, since it's like having "cash-in-hand." And, once you find the perfect one to purchase, your transaction should close more quickly.

3. Shop around for best deal

When shopping for a loan, your goal should be twofold: first to make price comparison and second to find a lender with a reputation for integrity and service. A loan is a product, so the price and terms may be negotiable. To find the best possible deal, you should do some research and compare the loans offered by several lenders before you commit to borrow. Also make sure that you check a lender’s reputation before submitting your application.

4. Apply for a loan

Call your lender to set up an appointment for the application interview. You need to bring all the necessary documentation with you to the interview. During the meeting, reconfirm the rate, points, and fees that you were quoted. You may ask for lock-in of interest rate to hold the price. Then the loan officer will fill out, or assist you in filling out, the loan application.

5. Get loan approval

After you apply for a loan, your lender will verify all the information that you provided. After reviewing all of the documentation, the lender will make the decision to approve or deny your loan. The time between submission of the loan application and approval may vary depending on the complexity of your loan, current market conditions, and whether you have to provide additional information.

6. Close the loan

Closing is the time when all parties sign the papers officially closing the deal and ownership of the property is transferred to you. You will need to pay closing costs and escrow items. Be sure that you read and understand everything before you sign. It's also your opportunity to make any last-minute changes to the transaction. It’s a good idea to review all the paperwork in advance and bring to the closing someone who will put your interests first.