Buying your first home is a huge step, but no one ever said it was easy. The vast majority of people will require a home loan in order to purchase their first house, and this can be one of the more confusing parts of the process. This guide will help you figure out what to expect when applying for a home loan and plot a course so you can move through the home loan process as quickly as possible.
Apply
Fill out the application form from your bank or lending institution. Be as accurate as possible, especially when it comes to your financial information.
Wait for Pre-Approval
Most easy home loans receive pre-approval within 24 hours of receiving the loan application. Pre-approval does not guarantee anything, but it can give you a good idea of whether or not your loan will be approved and in what amount. You will also receive a pre-approval letter that includes the price of the home you can buy.
Processing
After pre-approval, the loan specialist collects the necessary documents to verify your financial statement. Often, the property you want to purchase is appraised at this time to determine a fair market value.
Get Approved
If all your financial information checks out, your loan will likely be approved. However, if your loan is declined your loan officer can often recommend a course of action to help you obtain alternate financing.
Closing
During the closing process, you and your loan officer work together to complete all the required paperwork to finalize your loan. This includes applying for insurance and title documentation to protect your claim on your home.
Maintain the Loan
After you have received your loan, keep current on your payments so you can stay in good standing. Pay a little extra whenever possible to take care of the loan interest early.
When applying for a home loan, it is important to do so with an organization you know you can trust. Call Wasatch Peaks Credit Union and speak with a mortgage specialist today at 801-627-8700 or apply online!
