Whether you are a first-time homebuyer or buying a second or third home, the mortgage loan approval san diego ca has six steps. These six steps range from getting pre-approved for mortgage loan to actually receiving the mortgage. To prepare you for buying your slice of American dream, here is what you need to know about the process:
Pre-approvals Build Confidence in Your Lender that You can Buy a Home.
A mortgage loan pre-approval gets you closer to buying a home, than trying to get a mortgage automatically approved. If you can get pre-approved for a mortgage, your lender will expect you will have no trouble getting the actual loan. The pre-approval is based on your credit score and credit history from three credit bureaus.
It would seem that pre-qualification and pre-approval is the same thing. It isn’t. Mortgage pre-qualification is another step in the process. It looks at your credit history and your ability to pay the mortgage. A brief interview with a loan officer will determine if you pre-qualify for a loan.
Choosing Your New San Diego Home
Sometimes people will complete step two prior to completing step one. Each step should be follow the properly. For instance, your dream home could be sold before you can buy it if you find it before getting a pre-approval or pre-qualification. Thus, once you have secured both a pre-approval and pre-qualification, start looking for your next home.
Once you’ve found your dream home, make an offer. An offer means that you contact the seller and offer to buy the property. A real estate agent knows the ins-and-outs of structuring an offer. Typically, the offer will include one or more contingencies, or conditions, a buyer or seller must complete prior to finalizing the contract.
Apply for a Mortgage Loan for Your Potential San Diego Property
This is where you must apply for the actual mortgage. You’ll need some documents pertaining to your employment history, income and:
.Property you want to purchase
.Type of mortgage sought
All the information will be used to create a loan estimate. A loan estimate is not the actual lo. However, it does describe the terms and all predicted costs associated with the mortgage loan such as taxes, insurance and interest. Never believe that your loan is approved at this point. It is not. It is just an indication of what the mortgage will look if you are approved.
The Fourth Step Involves Starting the Mortgage Loan Process.
A loan processor will gather all the information you provided and review it. The loan offer is like a private detective because they will verify information like employment and credit score. The request a partial appraisal of the property.
A Mortgage Underwriter is Decision Maker
An underwriter decides whether you will receive the mortgage loan. They review the loan package given to them by the loan processor. After they review the loan package, they can:
.Approve with conditions
The last step is the closing. This is where you will sign your loan documents, if approved.