Posts Tagged ‘tracy homes’

Understanding The Loan Process

Monday, November 16th, 2009

The loan process is probably the most important part of buying a home, and yet it can be the most difficult to understand.

There are four main steps involved when obtaining a loan.

First: Determine how much you can actually borrow.
How much of a monthly payment can you afford? Given your unique credit and employment history, income and debt, how much will a lender loan you?

Second: Pre-quality for your loan.
After a review of such things as your credit, employment history, assets, and residence history, your Realtor will work with a lender in obtaining a pre-qual letter. The letter is used when making offers to show the seller you are able to afford the house.

Third: Apply for your loan.
When your offer is accepted it’s time for you to apply for your loan.

Fourth: Funding your loan.
Working with the lender and an escrow/ title company, your Realtor completes the home purchase process by making sure all the paperwork is complete and all deadlines are met.

When funding is achieved, the sale of the home can be recorded – making you the official owner.

As with all other parts of the home buying process, be sure to ask your Realtor plenty of questions, and don’t move forward unless you fully understand everything that is going on.

understanding the loan process