Research the Lending Process
Before you start your application, prepare for the process and consider what type of loans you are interested in. Some things to consider include:
- How long you plan to live in the home.
- Whether you want a fixed-rate or adjustable-rate mortgage.
- The pros and cons of different types of loans.
- What payment amount will fit your budget.
Compare Mortgage Lenders
Once you have an idea of what kind of loan you want, you can start comparing mortgage lenders. Most lenders can help you identify loans that will best fit your needs. They can also provide estimates for different loan options, giving you a sense of how much you will owe every month. The estimates include closing costs, other fees and interest rates.
Choose Your Lender
Choose a lender that provides great customer service, because they’re going to be your partner for years. When selecting a lender, consider the following:
- Determine the total cost of the loan by adding up the interest, closing costs and lender fees.
- Read their terms and conditions carefully.
Contact your chosen lender when you’re ready to proceed with the loan.
Get Pre-Approved and Complete the Mortgage Loan Application
If you’re looking for a home, you can ask a lender for a pre-approval. Getting pre-approved means that a lender has reviewed your financial profile and determined how much you can borrow. Typically, the lender will review your credit score and debt-to-income ratio and issue a pre-approval letter for the determined loan amount. A pre-approval letter may give you the edge when making an offer on a home. It shows the seller that you already have a lender in place should the deal go through.
Once you find the right house or are ready to move forward with your chosen lender, it’s time to complete the mortgage application.
Wait for the Clear to Close
Processing times vary by lender and loan types. During processing, the lender will review your application and verify your information. Your lender may request additional information during this time.
Once the application is reviewed, it is sent to an underwriter, who verifies that the loan meets the necessary requirements and confirms your ability to repay the loan. When the loan is approved, the underwriter gives the clear to close.
Did you know Ent offers a $500 mortgage closing guarantee? If we don’t close the loan on-time, based on the original sales contract, we’ll credit $500 to settlement costs at closing.1
Close on Your Home
Once the lender issues the clear to close on your application, your closing can take place. The lender will work with a closing agent, usually a Title company, to transfer funds for closing and prepare your closing documents.
Take a moment to review the closing disclosure to make sure the final figures are what you expected.