Mortgage Loan Process Explained | Nashville and Middle Tennessee
For a new home buyer who maybe hasn't been through this lending process, what can they expect from beginning to end? Education is the key to this process. Education is key in all of life, not just the mortgage process, but if somebody can be educated about the process, that's ideal so they can make the best decisions for themselves or their family.
What Are The Requirements for a Home Loan?
The initial application will consist of personal information, social security number (or ITIN number), birthday, where you work, how much money you have, potential debts, assets where they're looking to buy, and paperwork such as bank statements, pay stubs, and tax returns. Then initially the hope is to get credit pulled and put it all together and get approval so they can start home shopping.
Behind The Scenes of The Lending Process
If you're getting into a multi-offer situation, ultimately it's up to the buyer if they want to go that high but we have to know what the parameters are or else you're wasting time looking for houses they could never afford to begin with or we get in a multi-offer situation and we lose out because we can't find the lender to make sure that we could go up to X purchase price if the price keeps rising.
Once under contract one step is the ordering of the appraisal. Also check with their employer regarding details of their employment, how long they've been employed, how long have they been on the current job, their income (any overtime calculations), etc.
A lot of people expect their pay stubs to speak volumes and unfortunately, it doesn't stop there. There are a lot of phone calls and a lot of math, a lot of verification going on behind the scenes. Bank statements will be reviewed to verify that there is no extra money coming in from unsourced locations to prevent money laundering.
Buying or selling a home can be daunting and nerve-wracking especially if it’s your first time, but it doesn’t have to be! Give me a call at (615) 930-0313, schedule a call with me, or send me a message! I love helping people and using my financial and legal background to guide you in finding your dream home!