5 Key Steps to Securing a Home Loan

If you’ve never applied for a home loan then this blog post is especially for you. The destination of becoming a homeowner can seem overwhelming on the surface but when you have the right assistance be it from a realtor, friend with experience, or a home loan lender, you’ll quickly find that things align more efficiently than you previously imagined. One piece of information that is often lost in the mix is the importance of securing a home loan.

Unless you a purchasing the home in one lump sum, you will need a home loan. Here’s a glimpse into the steps that will help you secure your loan:

1. Fill Out an Application

Once you’ve found the home has met your needs and desires, it’s time to lock it down! You will need to fill out an application with your lender. This application will including learning about your finances, discovering any outstanding debts, your monthly income, as well as what your monthly mortgage will look like.  

2. Have the Home Inspected

A home inspection is essential for many reasons. Whether the home is brand new or a couple of years old, a professional inspection will asses areas of the home that may need work. These are often not disclosed through the home builder or seller. The report prepared by inspectors is used to tell sellers what work is needed prior to closing. It’s important to know what is and isn't covered early on.

3. Speak to Your Lender

Following up with your lender is key. As soon as you receive conditional approval, you should submit any additional requested paperwork right away so that the process can continue moving forward. If you develop any new questions or concerns, address them with your lender right away.  

4. Lock in Your Rate

Locking in your rate is important. You must secure your rate at least 10 days before your closing date. Although your closing date may get pushed back based on your seller or other reasons, securing the rate early on is key.

5. Review Documents and Prepare for Closing

Your home loan has been approved, your inspection has been completed, your appraisal and title search are good to go, and your closing date is set — this is when the finish line feels closer than you anticipated. Make sure you’ve reviewed your agreements, 30-day inspections, warranties, and the terms of your loan. You will also need to arrange closing costs. Once you’ve done all of this, you will be able to sign your final agreement and the home will be yours!   

Make the Process Easy 

Partnering with the right home loan lender is the most essential step in the path to becoming a homeowner. Though it can feel overwhelming and stressful at times, knowing that at the end of the race there will be a home waiting for you, the work it takes to get there will be completely worth it! My Home Loans is here to get you out of the weeds and into the palace. Contact us today to get started!