If you want to buy a home, you’ll most likely need to secure a dependable mortgage to make the purchase. But since home loans are often the biggest expense in the average American’s lifetime, it’s important to make sure your financing choice is tailored to fit your needs and budget. Offering mortgages and other lending services in Southern Minnesota, Roundbank explains what you can expect throughout the home loan process.
5 Steps to Getting a Home Loan
1. Get Pre-Approved
When you’re ready to start the home buying journey, you’ll want to choose a local bank or lender you can trust to help guide you through the financing process. Next, your lending specialist will review your personal and financial information to pre-approve you for a mortgage. This pre-approval will not only clue you into your purchasing power, but it can also show sellers you’re ready to make a deal.
2. Find a Property
Once you know what you can afford with financing, you can hire a real estate agent to help find properties matching your preferences and budget. When you find a house you like, your agent will submit an offer to the seller’s agent. If it’s accepted, you can begin the loan application.
3. Submit Application
When your offer to buy a house is accepted, you’ll go back to your lender and submit your mortgage application. The loan processor will collect an assortment of documents to verify your credit, the value of the property, income history, and other financial factors that could influence the terms of the loan. Generally, this should be pretty close to the terms suggested by the pre-approval.
Within three days of submitting your application, you’ll receive a loan estimate calculating the terms and expenses of the agreement. If everything meets your approval, your information will be submitted to an underwriter who will verify all the details in your application. If you are approved, you’ll meet with your loan officer to lock in an interest rate and secure the terms of your mortgage.
During closing, you’ll sign numerous documents that detail agreements between you and the seller, as well as you and the lender. You will submit a down payment to the seller, and the rest of the funds will be provided to them through your lender. Afterward, agents will oversee the final transfer of property, and you can arrange the time for move-in.
If you’re a first-time buyer in Southern Minnesota, Roundbank is a trusted financial institution that has helped many consumers secure their first home loans. Serving the Southern Minnesota area, this local bank aims to meets all the major financial needs of the community by providing personalized assistance through the entire lending process. To discuss your options or begin the pre-approval process, call (651) 463-8300 to schedule a time with a mortgage specialist.