How home loan application process work?

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I plan on applying for a mortgage soon, and I just wanted some more information on how it works. Where can I apply for a mortgage, I’m just a request for pre-approval? I have not chosen a home, but I would like to know what I’m good, so I can start. Also, I plan on moving in July, if I ask now is that there is no deadline for the approval of the contract or pre-approve a mortgage? I try to minimize the actual operating costs of the purchase that I am using my VA certificate of deposit to avoid, but what the closing costs? Closure costs for something that I can speak for the seller to pay? If not, what should I expect to pay closing costs? If you have any other useful information that could help me, I would really appreciate it. Thank you.

5 Comments
  1. Reply
    Judy
    April 29, 2011 at 10:39 pm

    Have you attained your credit reports for free yet at
    annual credit report.com
    One in 3 people have errors in their reports.
    Print all three reports out and review them carefully!
    If everything is perfect, get your credit score from
    Equifax.com for about 8 bucks or myfico.com for about 15.
    Do not sign up for a monitoring service – I consider these a scam.

    Pre-approval and Pre-qualification are different things.
    Pre-approval simply means that someone looked over your finances and rating and pre-approved you.
    Note: I never knew there was a charge by the bank for this.
    Do not go by the maximum house you can afford.
    Banks make money off big loans – they will push you for the biggest house out there.
    Do not spend more than 25% of your take home on a monthly mortgage payment.

    Do not make any big loans for 18 months before home purchase.
    Do not open any new credit cards 6 months before.
    For top credit – possbily 800+ scores, pay your credit cards in full each month.
    Credit card balances destroy credit.

    Google “how much house can I afford”.
    /

  2. Reply
    Rich
    April 29, 2011 at 11:29 pm

    Good day,

    I am Richard a private loan lender, i give certified loans to serious minded individuals and company at an interest rate of 5% with total loan repayment allowed weekly monthly or yearly depending on how you can make repayments if interested email me at rj.microfinance@mail.mn .We only offer out in: Dollars,Pounds,Euro and Naira only.Apply with the following details:Name,Address,Cell number,Occupation,Monthly income,Loan amount needed&Duration.

    Email: rj.microfinance@mail.mn

  3. Reply
    knowitall
    April 30, 2011 at 12:15 am

    Most must be pre-approved before a realtor will even show property to them.. You must have decent credit and a stable income. Closing usually runs 3.3% and yes, you can put in the offer seller pays. This does not mean they will accept, however if you offer 3 to 4 percent over what they are asking, then they may agree to pay closing. Of course the house must appraise for this, too. When you do make an offer and it is accepted, they will run a new credit check before closing to make sure you have not gotten more into debt.

  4. Reply
    curious
    April 30, 2011 at 1:07 am

    We purchased our house 8yrs ago with a VA loan. Make sure you deal with a lender that is familiar with VA loans – ours was not & we had a heck of a time. You will need to get a pre-approval to find out how much money you will be able to get to purchase a home – so you’re not looking at buying a $ 200,000 home when you can only get approved for a $ 100,000 loan. Once you find the house you like, you will fill out the paper work for the loan. Because we had a VA the house inspection was free, & we were able to put all closing costs into the loan for the house (instead of paying them up front). With a VA loan you have more options. You can still negotiate closing costs with the seller. It’s been awhile since we went through this process, so I don’t remember too much.

  5. Reply
    loanmasterone
    April 30, 2011 at 1:45 am

    Purchasing a house using your VA benefits you should get the seller to pay all closing cost as well as the funding fee rolled into the mortgage loan. An experienced VA loan consultant would know this. Tell the VA loan consultant that you want a true VA “NO NO”

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    “FIGHT ON”

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