An Overview of the Home Loan Process

The home loan process can be a bit daunting, particularly if this is your first time seeking financing. You don’t have to go it alone, of course – an experienced mortgage broker, like the professionals here at Intercap Lending in Orem, Utah, can be your guide.

That said, it does help to understand what’s coming at each stage of the homeownership journey, as that way you’ll be prepared to make the right decisions. Read on to get an idea of what to expect.

An Overview of the Home Loan Process

Mortgage Pre-Approval

Getting pre-approved for a home loan not only helps you get a fix on your budget – it shows that you’re a serious buyer. Before issuing a pre-approval letter, a mortgage lender will assess your income, credit score and financial history. Once your creditworthiness has been confirmed, you’ll know how much home you can afford.

Shopping for a Home

You might already be looking into the properties available in your favorite parts of Orem, Utah, but when you have a mortgage pre-approval letter in hand, you can begin house hunting in earnest. Many first-time home buyers turn to real estate agents for assistance with both the search and with the task of making an offer to a home seller.

Applying for a Mortgage

When you’ve tracked down your dream home and the seller has accepted your offer, it’s time to select a lender and complete a full mortgage application. Much of the paperwork was likely handled at the pre-approval stage, but to get the home loan through underwriting, the lender may need you to provide a few additional documents.

Home Loan Processing

Next, the mortgage lender you’ve approached will supply you with a home loan estimate. The easy-to-digest, three-page document is standard, making it simple to compare offers and land on the best deal. If you accept a loan estimate, the mortgage will be processed, with the lender verifying all of the information you’ve provided

Underwriters’ Assessment

You probably won’t have any direct contact with mortgage underwriters, but they’re the chief decision-makers when it comes to financing. Underwriters will confirm every aspect of your home loan application, and if everything looks good, accept the loan as proposed. Once approved, the mortgage interest rate you’ll pay will be locked in.

Closing on the Property

Now it’s time for closing on your dream home. At this juncture, you’re almost at the finish line – all that remains is to attend the closing meeting at the title company or a local attorney’s office. You’ll review stacks of documents, and if all appears to be in order, you’ll accept the mortgage with your signature and walk away with the keys.

Are You Looking to Buy a Home in Orem, Utah?

If you have questions about the home loan process, or if you’re ready to get things started, the experienced mortgage brokers at Intercap Lending would be happy to help. For a free consultation along with expert answers, guidance and advice on home loans, contact our office in Orem, Utah, today.