What Steps Need To Be Taken To Secure A Loan?
It’s exciting to be standing in your potential new home. You may be set on a property, but one of the hardest parts is yet to come: the loan process. For many prospective homebuyers, the loan process appears overwhelming, requiring many documents to solidify your approval and securing a loan. If you are organized, however, it is possible to collect all the necessary documents quickly for a rapid approval process with a qualified lender.
Collect All Your Paperwork
Although the lender does all of the actual number crunching for your loan, you need to start the loan process with many documents. Begin by collecting the past two to three months of pay stubs to prove you have a steady job. You will also need recent bank statements, sometimes as many as six months worth of transactions. Pull out your old income tax returns and provide the past two years of W-2 forms. A copy of the property listing is required as well to match the potential loan with the home’s current value.
Any credit cards, or other long term debt, should be documented with a recent bill. Student or car loans are part of this long term debt. If you have any other form of income, from inheritance to alimony, it needs to be documented and sent to the lender. You want full transparency to secure a low-interest loan.
Paperworks Completed
Once your lender has all of the paperwork under one file, they will run a credit report. If all of your paperwork is complete and truthful, the credit report simply lists the same information. However, it also notes any late payments or bankruptcies. The lender must know that you are trustworthy to secure a loan.
If your credit history is acceptable, an appraisal is called to verify the property’s value. You should attend this appraisal to be sure that the inspector thoroughly checks everything. The loan amount must match the home’s true value, as accessed by the inspector.
Waiting Game
Depending on real estate conditions, your loan should be completed, or funded, between one and six weeks after filing the paperwork. The large gap in time depends largely on the lender’s loan load. There may be a buyer’s market occurring, funneling more people into the system and tying up resources. Be patient and the loan will come through with a good credit history and steady career.
Securing a loan is relatively simple once all the paperwork is in. Save your documents through the years and be ready for a fast loan approval with responsibility by your side.
