Finding your dream house in a prime location isn’t enough. We understand that you’d want to move in right on the next day. However, it isn’t as easy as it sounds. The first step is to get your financing sorted. We start with applying for a mortgage.
Here are some of the steps that go into it:
Pre-approval and pre-qualification
If your loan has been pre-approved, the rest of the process will be smooth as a breeze. Every real estate would want to know whether you would be able to get a loan in the first place. Lending standards have become stricter over the past few years. A pre-approval will tell your real estate agent that you’re able to buy and a serious buyer.
All you need to do is pull out your credit reports and present them to the lender. This will enable them to suggest a loan amount that you can easily qualify for. Eventually, you should be able to make a more well-prepared offer.
Apply for mortgage
After you’ve looked around for the house of your dreams, you need to apply for a mortgage. You need to get a couple of documents, including your employment details, income details, property information, assets, and debt profile.
Your loan officer should be able to tell you more about the ones that you need. The loan officer would also want to know the exact address of the property, its expected sale price, property size, property type (condo, multi-family, single-family), details of annual real estate taxes, and estimated closing dates.
You also need to inform the loan officer if the property has any homeowner’s association dues outstanding. The officer then puts forward a loan estimate.
This is the crucial decision-making step. Underwriting includes scrutiny and evaluation of all the documentation that you have submitted. The underwriters also crosscheck the information to ensure that the property matches the mortgage’s eligibility criteria.
They’ll also review your credit history and then either approve or reject the loan accordingly. Underwriters are also experts at sniffing out potential fraud and red flags. The closing interest rate usually depends on the underwriter’s discretion.
Global Capital Partners Fund LLC is one of the top mortgage companies from New York. The company also specializes in hard money loans, asset-based loans, mezzanine financing, and bridge financing. Please take a look at some of their recent deals here.