What is the process to get a loan to buy a home?

Picture of a nice house

Some of the most common questions people have when they are thinking about beginning a house hunt is how does the mortgage process work?

Potential home buyers are asking questions like: How hard is it to get a home loan? How do I get pre-approved? Can I get a home loan? What is the process to get a loan to buy a home?  Joe McGregor, with Stonegate Mortgage, sheds some light on this in his guest post below.

A brief overview of the process of buying a house in 2016

  • Mortgage advisor will meet with customer to take the initial application for financing.  Information needed will be a 2 year work history, 2 year residency history and personal information needed to obtain a credit report.
  • With information obtained above the Mortage advisor will calculate the maximum purchase price and the estimated total monthly payment including taxes and insurance.
  • Pre approval letter will be issued to buyer and Realtor. (Now you can begin looking for a house!)
  • Once a house is found the buyer can call the Mortgage advisor to update the pre approval and get a new monthly payment based off of the price of the property.
  • Once the Mortgage Advisor receives a executed contract, we will lock the interest rate for 30 to 45 days and send out the pre disclosures that will need to be electronically signed by all borrowers to start the purchase process.
  • Once the pre disclosures are signed the loan officer will submit the loan to processing which will entail ordering the title, appraisal and getting the loan ready for the underwriter.
  • Appraisers usually take a week to 10 days to get the report back to lender.
  • Once appraisal is back the loan is submitted to underwriting for approval
  • Processor and Mortgage Advisor work with borrower to get the things needed by the underwriter to have the “Clear to Close” issued.
  • Once clear to close is issued the Mortgage Advisor schedules a closing 7 days out agreed upon by all parties.
  • 3 business days before closing the buyer must receive the Closing Disclosure from the lender letting them know the final numbers for the loan. The exact amount due at closing is finalized in this document. It is very important that the buyer electronically acknowledges receiving this document 3 business days before closing to ensure the date does not change.
  • Loan Closes!

This guest blog post was written by Joe McGregor, a Mortgage Advisor with Stonegate Mortgage. Please feel free to contact Joe anytime with questions or if you would like to get Pre-Approved.   The initial conversation should only take a few minutes.  

Office: 419-525-9324, Cell: 330-730-5539 joe.mcgregor@stonegatemtg.com NMLS# 275463

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