Keys To A Successful Loan Process

Whether it’s a purchase or refinance loan, the loan process involves following a fairly strict timeline. It can be a smooth ride or a bumpy road – and usually depends on your level of preparedness. Before you start navigating through the home loan process, start by learning the road map.

A loan process overview

Before you start to seriously shop for a home loan, it’s a good idea to understand the steps involved in the home loan process.

5 Basic Steps of the Home Loan Process

• Step 1 – Find out how much you can borrow.

  A loan prequalification or pre-approval is critical to the loan process and allows a consumer to receive an estimate of their borrowing power.

• Step 2 – Choose the most comfortable loan.

  In consultation with your home loan advisor, educate yourself on which loan product and program best fits your home financing needs and home ownership goals.

• Step 3 – Complete application paperwork.

  The borrower’s attention to detail is needed here to ensure that all information reflected on the application is accurate and that all supporting documentation is gathered and submitted with the completed loan application.

• Step 4 – Loan processing

  This phase of the loan process covers all the steps the lender takes once they have your completed paperwork:

  • Application review and verification
  • Appraisal of the home’s value
  • Underwriting – involves analyzing your application to make sure you can afford the loan
  • Clearing conditions of the loan, assuming the loan process has produced an approval

• Step 5 – Closing, or settlement, of the loan process

  This can be done in person or using a 3rd party escrow service, depending on local loan process customs. If everything proceeds according to agreement, you’ll be signing lots of papers, exchanging lots of money and walking away as the new owner of your home!

Ready to start the loan process?

Call us today at 1-888-284-7596 for a FREE consultation. Our experienced home loan advisors can help you navigate the home loan process and answer your questions. Whether you’re looking for a purchase or refinance loan, our loan experts are ready to help.