Thursday, March 17, 2016

Steps To Getting A Mortgage Loan

Are you dreaming of homeownership? Owning your own home has several great advantages, from a unique sense of pride and position in your local community to unbeatable financial benefits. If you have been thinking about buying a home, First Bank of the Lake would be happy to answer any questions you may have about mortgage loans and their application process. We provide both in-house and secondary market mortgage loans. For those of you considering taking the homeownership plunge, here is a quick overview of the mortgage application process.

Prequalification is the first step towards getting a mortgage loan. Prequalification is generally very informal - you will meet with your lender to provide some general information on your household income, current debts, and other assets, but the lender will not seek external verification. Based on the information you provide, your lender will provide you with a rough estimate of how much money you should be able to borrow for your home purchase.

The lender does not verify the information you provide, nor does he/she commit to lending you any money. Though nothing is set in stone at the end of the prequalification process, it is an important step because it allows buyers to get a general idea of how much home they can afford. For this reason, we encourage prospective buyers to get prequalified before they begin shopping for homes in earnest.

The next step is pre-approval. Pre-approval is much more formal, as this is the time when the lender will carefully verify all of the information you provided verbally during prequalification. In order to get an accurate understanding of your financial situation, you will have to provide your lender with official copies of several financial documents, including:
  • Most recent pay stub (showing year-to-date earnings)
  • W-2s for the last two years
  • Tax returns for the last two years
  • Names and contact information for all employers in the last two years
  • Bank statements for the last two months

You will also need to provide your birth date and social security number. Your lender will verify all the documentation you provided and pull an official copy of your credit report to determine your creditworthiness as a buyer. Armed with this in-depth information, your lender will provide you with paperwork outlining what amount you should be able to borrow and what interest rate you can get. Buyers with pre-approval often carry much greater weight in the home negotiation process, because they are clearly serious about their purchase.

Finally, the time will come to close on your mortgage loan. Closing (sometimes referred to as "settlement") is the process where all funds are transferred to the appropriate parties, all documents are signed, and everything is finalized. You will be required to sign your name on a seemingly endless list of documents, and it is important to make sure you understand what each document covers and what you are agreeing to. Your lender should walk you through each document to ensure you are comfortable with its purpose before signing. If circumstances allow, closings are sometimes conducted with both the buyers and sellers in the same room. If this is not possible, however, the buyers and sellers can sign their documents separately. 

First Bank Of The Lake Can Help With Your Mortgage!
If you are considering buying a house and are looking for a mortgage loan at the Lake of the Ozarks, we would love to talk to you. Our experienced lending officers would be more than happy to walk you through the process. Our goal is to ensure that our clients feel comfortable and confident with all aspects of their mortgage loan. For more information, visit our branch or call us directly at 573-348-2265.

First Bank of the Lake - Striving For Excellence
Member FDIC. Equal Housing Lender.

Located at the entrance to the Osage Beach Premium Outlets!
4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

No comments:

Post a Comment