How To Get A Mortgage Loan

Steps to getting a mortgage

The process of getting a mortgage is often complicated and intimidating even for those seasoned home-buyers. If you get the whole picture of the mortgage loan process and understand the steps involved in getting a mortgage, much of the stress can be avoided.

** Before you start looking for a mortgage, be sure to do some homework yourself. You need to have the idea of the size and the type of the mortgage that you need. Many articles in our web site will help you make the right decision. You can also talk to a mortgage lender or a realtor. They will be happy to help you to determine how much house you can afford and perhaps make suggestions that could make it easier to get the best mortgage for you.

• How much can you afford?
• Down Payment

Here are the steps to getting a mortgage loan. You will learn more details about each step following the links.

1. Organize your documents
   Gather all the information and supporting documentation you'll need to apply for a mortgage pre-approval or to submit your mortgage application. Different lenders may have slightly different information requirements, but basically what they need to know about you is your employment, finances, and information about the home you're buying. 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.
   
   More Info: Documents needed for loan application
   
   
2. Get pre-approved
   Consider getting pre-approved for your mortgage before you start shopping for a home. 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 home, your transaction should close more quickly.
   
   More Info: Pre-approval
   
   
3. Shop around for a mortgage
   When shopping for a mortgage, your goal should be twofold: first to make price comparison and second to find a lender with a reputation for integrity and service. A mortgage 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 mortgages offered by several lenders before you commit to borrow. Also make sure that you check a lender’s reputation before submitting your application.
   
   More Info: Mortgage lenders
   
   
4. Apply for a mortgage
   Once you have made your choice on a mortgage and your offer has been accepted by the seller, then it’s time to apply for a mortgage. 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. Wait for the loan approval
   Waiting for the loan approval must be tormenting to many home-buyers. After you apply for a mortgage, your lender will have credit report, home appraisal, and title search done and 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 mortgage, current market conditions, and whether you have to provide additional information.
   
   
   More Info: Qualifying a Mortgage Loan -- What do lenders see?
   
   
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. Your lender will let you know what to bring. It’s a good idea to review all the paperwork in advance and bring to the closing someone who will put your interests first. Be sure that you read and understand everything before you sign.
   
   
   More Info: Closing Costs

You’ll need to provide information the lender needs to approve the loan. and have a meeting with a loan officer. They will explain the types of mortgage loans available to you, interest rates, fees for each type and the qualification requirements.