Are you working on your finances to prepare for buying a home? If so, you likely have questions about the process. The home loan process requires some steps, and you should know about the four main ones. Knowing these can help you learn what to expect and what to do, which will help you complete the process. Here are the four primary steps of this process.
1. The Preapproval
The first step of getting a home loan is getting preapproved for the loan. You must get preapproved before doing anything else, including shopping for a house. The preapproval process requires submitting a loan application to the lender. Therefore, you must select a lender first. Next, you must complete the steps the lender requires. After doing all of these things, the lender will provide an answer to you. If you meet the loan criteria, they will preapprove a loan for you. You will need this before moving on to the second step.
2. Choosing the Home and Getting the Inspections
The second step is choosing a home. To choose a home, you must hire a real estate agent and give the agent your preapproval letter. Your preapproval letter tells you how much you can borrow, and this amount helps you know what homes to view. During this step, you will need to pick a home to buy and work out a deal with the seller. You can then begin getting the inspections and other things that your lender requires for the deal.
3. Waiting for the Lender to Verify Everything
After you get the inspections and appraisal, the lender will begin working on your loan file. They will verify every detail of the purchase, including every detail about the home. They will also verify all your financial details. If everything checks out fine, they will approve your loan.
4. Closing Day
The final step is closing day. On closing day, you will sign the paperwork for the loan, and you will take possession of the house. It takes at least one month to reach this point in the home buying process, but the appointment takes only an hour or so to complete.
After learning these things, you might be ready to start looking for a lender to use. Your lender can help you work through the first step of the process, which is getting preapproved. Your lender can also assist with the remaining steps of the home loan process.
To get started with your home loan purchase, reach out to a local lender.