Make no mistake, there’s a lot involved in getting a mortgage loan.  There are four main steps involved in getting a loan. 

Step one: determine how much you can borrow:
This is a function of a couple things. How much of a monthly payment can you afford? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the calculators online. Based on standard lender guidelines, you’ll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step two: pre-qualify for your loan:
This is where the rubber meets the road and you save the most money. You supply information about your employment, your assets, your residence history, and so on. The lender then runs a credit report to get your credit score. This will get you a Pre-Qualification Letter to be used by your real estate agent to make the best offer on the home you choose, and the seller knows you’re pre-qualified. It gives you buying clout! And while you’re picking out the home that’s right for you, we’re busy finding the loan that’s right for you.

Step three: apply:
Once you’ve made an offer and it’s been accepted, it’s time to complete the loan application.

Step four: your loan is funded:
Your real estate agent and the seller’s will work together to designate an escrow/title company to handle the funding of your loan once it’s approved. The lender will coordinate with the escrow company to make sure all the papers needed are in order, and you’ll sign everything at the escrow/title company’s office.

Contact Linda Murphy, Sr Loan Consultant, RPM Mortgage, (831) 466-2453