Applying for a loan to buy your next dream home and not sure where to start? Confused by the whole process? We get it. Applying for a loan can be daunting and overwhelming.
Blackstone & Company wants to go beyond your average realtor and guide you through the process as well. We’ve come up with an overview so you can be prepared to get pre-approved, apply for a loan, and ultimately land your dream home!
Steps
1. Get pre-approved for your loan. Not sure how to do that? Check out our guide to walk you through this essential step.
2. Apply for a mortgage. Once you have pre-approval for your loan and you are under contract for your new home, the lender will send you an application to apply for a mortgage. This usually entails a phone call and where you will provide pertinent documentation. They will also request a credit report and schedule an appraisal for your current home.
3. Get your new home appraised. This is an important step because the appraisal protects you as a buyer on the financial aspects of the home.
4. Your loan goes through underwriting. A financial expert (underwriter) will review your financials such as income, assets, and any debt you might have to verify the loan and determine the risk level.
5. Your loan is approved!
6. Title company performs a title exam. This is also when the insurance and title surveys are conducted to ensure the ownership of the property can be officially transferred to your ownership.
7. Your loan is funded. The lender conducts a final review of the loan package and once approved, the funds are transferred by wire on closing day.
8. Close on your new home!
Do’s and Don’ts of the Loan Process
- DO notify your lender of any address change, whether it’s your home address or another listed on your application.
- DO notify your lender of any income change or if you plan to move money between accounts.
- DO obtain a clear termite report or proof of treatment and a homeowner’s insurance policy (include name and phone number of insurance agent) *contact Blackstone & Co. or title company for termite report.
- DO keep all forms of debt paid and in check.
- DON’T make large purchases using existing credit without first talking to your lender
- DON’T apply for or acquire any additional lines of credit
- DON’T pay off, transfer, or close credit balances unless your lender instructs you to do so
- DON’T change jobs without first talking to your lender
- DON’T co-sign for another person seeking to obtain a line of credit or to make a purchase
- DON’T pay off collections before conferring with your lender
Loan Application Documents
When you apply for a loan, there are several documents you will need to have on hand. Getting these documents organized ahead of time will speed up the process when you’re ready to apply for a loan:
- A month’s worth of your most recent pay stubs
- Copies of your last two years’ federal tax returns and W-2s
- The names and addresses of your employers over the last two years, compiled into one list
- Last two months of bank statements
- A copy of your real estate agreement/contract divorce/separation decree
- Child support papers
- Bankruptcy, discharge of bankruptcy papers
Conclusion
There’s a lot of steps ahead for you to complete as you look to buy your next home in NWA. Luckily, you’re not alone. Blackstone & Company is here to walk alongside you throughout the process. Our team of full-time professionals will answer any questions you can think of – go ahead and try it! Reach out to us and we’ll be in touch!