Home Loan Approval

| January 2, 2012

The process for home loan approval is simple, if taken as a series of steps. It is the same process for refinancing, remodeling, or getting that first home loan mortgage approved. Knowing these basic steps ahead of time should make the process of getting a home loan approval quick and painless.

First you should see if you can apply for preapproval based on your existing financial status. You will need tax returns for the last two years, your recent paycheck stubs, your latest credit card statements, and any information on current outstanding loans. In most cases you will be given a fast answer, either preapproved or a denial. This will also let you know anything that needs to be addressed in the process that follows, especially if you are house hunting as a buyer.

Next you will want to find a home or give the property information about the home you want refinancing for. This will be a submission of the property address for appraisal purposes, the title reports, and any other inspection information that is required.

Next you must wait for the loan processing and review. This is when the loan processing agent verifies all documentation about the property in question. This verification includes checking property values and being sure the title on the property is clear. All of these will be reviewed before last approvals can be given.

The last step in the process is to close the loan. After getting issued final approval a closing time will be scheduled. The real estate agent and a loan approval specialist will usually work with you on the closing. As part of the closing you will receive a settlement statement to sign. This statement discloses all details about the closing costs that you are obligated to pay, the mortgage information, the deed of trust, and any other documentation that is required.

Any other details should already be taken care of at this point, but if necessary you may want to seek an outside professional to overlook the documents before signing. It is always better to be absolutely sure you understand what you are signing, both legally and financially.

After signatures are received, then the closing agent can record the mortage or deed of trust information with the local county recorder. This is followed by the issuing of a title insurance policy. Then your home loan approval is finalized and ready.

Category: Home Loan

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