Obtaining a Mortgage

When it comes to the loan process, there are several steps that one must go through. By making yourself familiar with it, you will better understand what is required of you and how you need to prepare. After all, the more knowledgeable you become the more comfortable and in control you'll feel.

1. Organize Your Documents

In order to obtain a mortgage, your lender will require certain documentation from you to make sure that you will have the ability to repay the loan you take out. Such documentation includes proof of employment, credit history, tax returns, pay stubs, bank statements, divorce and child support statements if applicable, and any other information that the lending company feels might be necessary.

2. Pre-Qualification

Before you begin to look for a property it is best to schedule an appointment with a Mortgage Broker and discuss pre-qualification. The Broker, either with a Mortgage Company, Bank or Trust Company will review your financial information and debts to determine if you are in a position to purchase a property. They will also guide you regarding what price range and type of home. (Often less conventional homes and fixer ? uppers may require a different type of mortgage) Often times you may be a few months away from being able to secure a mortgage and the Broker may guide you as to how to improve your financial situation. Pre- approval provides for a quicker full approval when you put an offer on a property of interest. In competitive markets, a short Financing condition is beneficial.

3. Qualification

Once you have been pre- approved and have found the home of your dreams you are ready to put in an offer. You will have more leverage when negotiating if your agent is confident your financing is secure and you can shorten the length of your financing condition. Your Broker will now submit all paperwork along with your offer for approval. Often times the lender may require an appraisal.

4. Find the Right Mortgage

While searching for the right mortgae, there are many things to take into consideration. For example, you might want to think about how long you plan on keeping the loan. The length of your residence will determine the type of loan you want to get (i.e. adjustable or fixed). To figure out which loan program is the best, you will need to compare different programs and everything that each one involves such as rates, fees and points. The whole process can be tedious and difficult at times, which is why a qualified loan officer can help you make the right decision.

5. Obtain Mortgage Approval

The process of obtaining mortgage approval involves the following steps:

• Review of mortgage application (be sure to fill it out completely).
• Verification of credit history, employment history, assets such as bank accounts and mutual funds, property value and any additional information that the lender might require.

There are also a few things that you can do to improve your chances of getting the mortgage approved.

• For any requests of additional documents and information, respond promptly.
• Do not make any major purchases such as a car or new furniture until the mortgage is closed. Increasing your debt can have the opposite affect on your application.
• Make sure you will be in town for the closing date. If you cannot be there for the closing of the mortgage, you can carry out a power of attorney to authorize someone to sign on your behalf.

6. Closing the Mortgage/Signing Off

Once the mortgage is approved, your next step will be to sign the final documents, which usually takes place in the presence of a notary public. Be sure to verify the information within the document, especially the interest rate and loan terms. Also check to see if your name and address are correct. Finally, don?t forget to bring a cashier?s check for your down-payment and closing costs.

If you have questions, or would like more information about buying your next home, please fill out the form below or give us a call at 519-941-5151 or toll free at 1-800-268-2455. We look forward to hearing from you!

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