How to apply for a home mortgage loan

Planning to secure a home mortgage loan? Below are steps to help you apply for a home loan.

Application prep

To get ready to apply, have your financial information on hand. Your lender will need proof of income, tax returns, and all pages of your asset statements, including your bank accounts, 401k and investments.

Start the process

It’s easy to start the financing process. Begin by contacting a home mortgage consultant by phone or email. He or she will help you complete and submit your application.

Within three days you will receive two documents in the mail:

1. Good Faith Estimate - This document reflects a preliminary itemized list of fees and costs associated with the loan, i.e., property taxes, homeowner’s insurance, and pre-paid interest.
2. Truth in Lending Disclosure - These disclosures contain important terms of credit which include the annual percentage rate (APR), term of the loan and total costs to borrower.

You will review, sign and return the documents. Keep in mind that the sooner you return your required documents, the sooner your lender can process your loan application.

Application review

Your mortgage consultant will submit your application for review and verification. Next, underwriting will verify your employment, income, and financial information. The appraisal will be ordered to determine your property value along with other services such as title insurance.

Prep for closing

Once your loan is approved and you are ready to close, confirm a closing date with your agent. Prior to closing, your closing agent will provide your final closing figures so you can obtain a cashier’s check for your closing costs and down payment.

Closing day

Finally, the lender will send the closing document to your closing agent. At closing, review the documents with your agent, then sign and date them.

Congratulations on your new home! Collect your keys and move in.

To learn more about home financing options and ways to achieve your home financing goals, contact Edina Realty Mortgage today.

_{Edina Realty Mortgage is an affiliate of Edina Realty. See Affiliated Business Arrangement Disclosure Statement.}