Mortgage application process might become clumsy for the one who are completely new to home loans and mortgage business. The mortgage process always starts with couple of questions and big decisions. Most of the questions that come in first are “Where to start from?” ” How much loan can I borrow?” “Can I get a home loan?”,” How to apply for a mortgage first time home buyer?” etc. A mortgage lenders criterion says that they won’t lend more than four times the applicant’s annual income. So, if you earn $20,000 than you can borrow up to $80,000.Timeline and documents need for the application might be different from the lenders to lenders.
Here are the basic mortgage application process.
1. Find the best mortgage lender
Buying house might be the biggest financial decision of your life. Mortgage lenders that operate in different states can be the best and they might not be operating all over the country. Find the reviews of the local lenders from there you can surely know the lenders work history. Mortgage lenders have a good experience and training to find the property that is appropriate to you. A best mortgage lender helps you throughout the process in order to run the mortgage application process smoothly. So before you apply for mortgage find the best lender who can help you in all your mortgage lending steps.
2. Get it agreed in principle.
The step is included thinking that you have some rough idea about the value of property. If you want to know about how much you can borrow and you have no idea about that than you can follow the mortgage adviser and you can get some idea from them or you can try our mortgage calculator here. Mortgage lenders grant you with the agreement in principle only having assessed your personal circumstances for eligibility. An agreement is given on the assumption that all the information provided to the lenders is genuine.
3. Search for the property you want
Now you can search for your property, this is not applicable for remortgages. You can search for your house in your own pace, make a good decision. Search for the house that is suitable for you looking your financial background. You can search for the property from the local firm or from online too but insure that your mortgage advisor can help you here. Do not pay any fees before valuation of the property is finalized and approved because if any problem arise, or you may not want the property then in this condition your payment is mostly not refunded.
4. Valuation of the property
The mortgage lender arrange a surveyor themselves to value the property you have chosen. They will check for the value of the property and the payment you are making upfront. This might affect the mortgage rate. During this time all your other application processing is done. This includes your application document checking, checking of mortgage application, processing fees etc.
5. Mortgage is offered.
Once your entire document is verified and the valuation of the property is marked suitable for the mortgage by the mortgage verifying authority (surveyor), then the written mortgage offer will be provided to you. The verification documents includes
- Copy of valid State ID’s, Driver’s License
- 2 most recent pay stubs.
- Canceled checks for your rent or mortgage payments.
For other document information you can check apply for mortgage loan online