Buying your own home is exciting, but mortgage process can be a little intimidating. Therefore, get to know the mortgage process in advance to be familiar with what to expect. This makes a big difference to your confidence level and eliminates stress.
Get prequalified online
Before shopping know your budget. Pre-qualification means an estimate about your affordability to buy new home. You need to offer information related to your assets, debts, and income to the professionals at Prime Lending Company.
The money lender offers a list of necessary documents.
- Recent paystubs from last 30 days
- 2 months current bank statements from all accounts
- 2-year tax return documents
- 2 years W-2 and 1099
- Social security card
- Drivers license
- Current copies of IRA.401K or stock brokerage accounts
- For self employed – profit & loss statement [one year to date]
- If applicable divorce decree or/and child support court order copy
After purchase agreement gets signed the lender gathers information needed for mortgage process. Loan officer transfers the file to an underwriter. Underwriter checks your eligibility on the basis of existing & expected mortgage debt, employment history, credit history, and income. Loan lender may request extra documents for mortgage getting approved.
Conditional & final underwriting approval
Conditional approval means lender is prepared to approve the agreed loan sum for new home purchase but there will be certain conditions to be fulfilled.
Common conditions are –
- New home insurance proof
- Proof of new property appraisal value
- Updated paystubs
- Bank statements
Closing Disclosure documents are sent by the title company. All the terms and costs details related to the loan are provided. Review this document and if there are any doubts call the money lender. This document needs to be signed in 3 business days before closing.
Make sure to choose the best lender for your home purchase.