1. Organize Your Documents

In order to obtain a mortgage, your lender will require certain documentation to make sure that you will have the ability to repay the loan you take out. Such documentation includes proof of employment, credit history, tax returns, pay stubs, bank statements, divorce and child support statements if applicable, and any other information that the lending company feels maybe necessary.  The first step is to contact one of our Cornerstone Group Team Members to do a preliminary review of your situation to better guide you on what types of documents to provide.

2. Qualification

Before you apply for a loan, getting pre-approved will help you establish how much you can borrow. You have two options to choose from to qualify for a loan. The first option, pre-qualification, is a quick process that usually happens in a matter of minutes. While pre-qualification is helpful, your other option—pre-approval—is more beneficial and gives you better leverage when negotiating with the seller. Getting pre-approved also lets you focus on homes within your price range instead of wasting time looking at homes that you won’t be able to afford. Finally, when it comes time to close, the process will go rather quickly since your loan has already been approved.

3. Find the Right Loan Program

While searching for the right loan program, you’ll want to take several factors into consideration. For example, you might want to think about how long you plan on keeping the loan. The length of your residence will determine the type of loan you want to get (adjustable or fixed). To figure out which loan program is the best, you’ll need to compare different programs and everything that each one involves, such as rates, fees, and points. The whole process can be tedious and difficult at times, which is why our Cornerstone Group qualified loan officer can help you make the best decision.

4. Obtain Loan Approval

Obtaining loan approval involves the following steps:

• Review the loan application (be sure to fill it out completely).
• Verification of credit history, employment history, assets such as bank accounts and mutual funds, property value, and any additional information that the lender might require.
  
  

To improve your chances of getting the loan approved:

• Respond promptly to any requests for additional documents and information.
• Do not make any major purchases such as a car or new furniture until the loan is closed. Increasing your debt can have the opposite affect on your application.
• Make sure you will be in town for the closing date. If you cannot be there for the closing of the loan, you can carry out a power of attorney to authorize someone to sign on your behalf.
  
  

5. Close the Loan

Once the loan is approved, you’ll sign the final loan documents, usually in the presence of a notary public. Be sure to verify the information within the document, especially the interest rate and loan terms. Also check to see if your name and address are correct. Finally, don’t forget to wire funds (your down payment and closing costs) to escrow or title right after signing your notarized loan documents to ensure escrow can be closed on time.