When looking to buy a new Coral Springs house, you will likely need to get a home loan. There is an excessive amount of information available about the mortgage process and rates, and it is hard to know what to pay attention to. In this article, we go over all the steps involved with getting your home loan from the first lender meeting to closing on your mortgage.
The Initial Meeting
When you first go to see a lender, you will give them some information about your income and your debts. They use this information to determine how much you, the borrower, will be able to afford to pay for your mortgage which drives how large of a loan you can take out. The amount the financial institution decides they are willing to offer you is called a prequalification.
Choosing Your Type of Rate and the Mortgage Program
To determine which mortgage rate is right for you, you must decide how long you will be staying in your house. If you are only planning on living there for a few years, then an ARM (Adjustable Rate Mortgage) could save you money in the long run. If you want to keep your house for an extended period, it usually makes the most sense for you to choose a fixed rate mortgage instead. Once you have determined which rate you want, you need to decide on a mortgage program. There are various programs available, and they can be confusing and hard to navigate which is why talking over all the options with a loan officer can help you make a well-informed decision.
Time to Apply
Once you start the application, you have begun the actual loan process. Here you will fill out forms, and go over any other documentation that the lender needs from you. Your lender will verify rates and loan fees at this time as well.
Getting the Loan Estimate
A loan estimate or a good faith estimate (GFE) is a form that goes over the details of the loan you have requested. Some of the information listed on this document includes:
- Estimated Interest Rates
- Monthly Payment Amount
- Total Closing Costs
- Estimated Tax Costs
- Estimated Insurance Costs
The lender writes this document in a way that the average borrower can understand and the information found here can help you compare this mortgage to any other mortgages you may have applied for.
After getting the loan estimate, you need to decide if you want to take out this loan or not. If you determine that this loan is in your best interest, you must notify the lender that you intend to go through with the application, and as the financial institution, they will continue the home loan application process.
The Continued Process
After the lender submits the formal application, the real home loan processing starts. A processor will go over your credit report and the title and appraisal for the home you are buying as well as gather information about you as the borrower which they give to the lender.
Going to the Underwriter
After the processor has submitted your paperwork, an underwriter looks over your file and makes the decision to approve or deny your loan. If there is any portion of your information that is unclear, the underwriter can request more documents to clear up those issues. If your loan request is accepted, you will receive notice of your approval.
Ready to Close
When it is time to close, you will receive a document called the closing statement which is the form that goes over all the details of the mortgage you are getting. This document includes:
– The Terms of the Home Loan
– Monthly Payment Projections
– Total Closing Costs
You have a three-day window to compare the closing disclosure to your loan estimate and bring any concerns or questions regarding the paperwork to your lender for review or clarification.
Once all the approvals have gone through, and the loan is funded, the lenders closing lawyers will set up a date and time for you to come in and sign the loan papers. This is the date that you will pay any down payments, sign all the remaining documentation, and get the keys to your new home. Congratulations you’re a homeowner!
Choosing a Lender for Your Coral Springs Home Loan
NHL Lending is an excellent choice for financing. Our team of loan experts is ready to assist you in selecting the best program for you and your financial needs, and we offer some of the best home loan rates in the Coral Springs area. Here at Kloze, our staff is knowledgeable, friendly, and experienced. Contact us, to start discussing a mortgage solution for your situation.