A Step By Step Guide To Securing A Home Loan
Once you've found the home you want, your next job is to secure a
loan. Follow these steps to keep your home on track:
- LENDER Select a lender and loan
type. Ask friends for a referral of a lender, or I can recommend
several. Ask for comparisons on loans to see which is right for
you. Don't forget to ask about fees, points, lock-in policies.
- APPLICATION Fill out an
application. Bring along your social security number, your most
recent W-2 statements, approximate debt on credit cards or other
loans.
- COSTS Review the "good faith
estimate" your lender is required by law to give you. It tells
you as accurately as possible what your costs will be.
- INSPECTIONS Schedule necessary
inspections once your lender has given the go ahead. The
lender's requirements, state law and condition of the home you
are purchasing determine what inspections are needed.
- APPRAISAL Be on hand to answer
questions. Your lender may need additional information from you
after you apply. At this time your lender will also arrange a
home appraisal for you.
- FOLLOW-UP Check with the lender
on the progress of the exacting legal work involved, such as the
title search, survey, etc.
- APPROVAL When you receive
written confirmation of your loan, read the "commitment" letter
carefully and promptly supply any further information necessary.
- SETTLEMENT Arrange for a
settlement date and be sure to bring all items the lender has
requested in the commitment letter.
- FIRST PAYMENT Begin paying your
mortgage. Your lender will either give you a payment coupon book
at settlement or mail it to you, or you may arrange for a
monthly automatic withdrawal from your bank.
Don't forget
your payment is due when specified even if you don't have your
payment book yet. Also expect the lender to provide you with an
annual, end-of-the-year statement detailing the amount of
principal, interest, tax and insurance you paid during the year.
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Securing
A Loan
Follow these steps to help
secure your home
loan.
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