Wednesday, September 5, 2012

The Home Buying Process: Step 6

This is the sixth post of ten in a series about the home buying process.  The purpose of this series is to educate the reader on different steps in the process to ease any anxiety of the unknown.  Whether you are a first-time buyer or have purchased in the past, it is always advantageous to be up-to-date with the latest news and information to make your path to home ownership as smooth as possible.

Step #6:  Mortgage Application

You've been pre-approved for a loan, but unfortunately pre-approval does not guarantee you a loan.  During this step of the home buying process, you must formally apply for a loan for the property in which you have selected to purchase.

The pre-approval process is done with only very basic information.  The mortgage application allows the lender to more thoroughly examine your financial situation to determine your true qualifications.  During this time the lender will look at all sorts of information.  The lender may ask for tax documents, income statements, debts, financial obligations, assets, bank statements, and any other information required for the specific loan you are applying for or qualify for.

Work with your lender to gather as much information about your situation that you can before sending your application off to an underwriter.  You should be certain that you have provided enough evidence to convince the underwriter that you are qualified to purchase a home.  This is where the importance of choosing a trusted lender comes in handy.  The best lenders will assist you during this stage to make your case look its very best before you even submit.

Once the paperwork and compiling of documents is complete, it's time to send your application off to underwriting to determine the level of risk as a borrower.  Come back next week for Step #7:  Underwriting.

Take care,
Scott Morrison

Click here to search for a house for sale in Gahanna Ohio

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