A conventional mortgage or conventional loan are loans offered through private companies such as banks, credit unions, mortgage companies or a loan guaranteed by either the Federal Home Loan Mortgage Corporation (Freddie Mac) or Federal National Mortgage Association (Fannie Mae).
Prequalification takes place before the loan process is started. The lender must be provided with a detailed history of your income and debts in order to make a financial determination regarding how expensive of a home you may be able to afford. This is crucial information you to know before you start shopping for a home.
The application is the first step in the loan process. After you have found a home you’d like to purchase you’ll be required to fill out a loan application and provide all of the required documentation needed to complete the processing for a specific loan program. Closing cost, escrow fees and down payment options are also discussed at this time.
Once your loan is submitted with the most appropriate lender, their underwriter determines whether or not the application package corresponds to all the lender’s criteria.
If your loan is approved by the underwriter the lender will provide a conditional commitment to lend which may include concerns with income, credit and the property. At this point the lender will work with you in order to fulfill all the conditions on the commitment to lend and schedule a time for the closing.
At the time of closing all required document are to be signed with a notary present. The lender then funds the loan with a wire transfer or cashier’s check sent to the closing agent who then distributes the funds which are exchanged for the title transfer for the property. Once completed this signifies the completion of the loan process and the home is actually purchased or refinanced.
Copyright © 2023 jgcervantez - All Rights Reserved.
Powered by GoDaddy
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.
Answer 5 simple questions and provide your contact info for a Pre-Approval today!