Understanding the Home Loan Process
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Home Mortgage Loans
This lens is for you to learn about the home loan process and what is involved in obtaining a mortgage for your new home purchase. The information also applies if you already have a loan and are thinking about refinancing in order to lower your interest rate, pull cash equity out or change your present mortgage terms and conditions. It is set up as an overview and can be used as a guide to help you know what to expect no matter where you currently live within the country. For specific information or questions about a particular mortgage situation, please contact us at Metro Mortgage Company and we'll be happy to assist you.
Home Loan Process
For many buyers, applying for their home loan is one of the more stressful aspects of buying their new home. The home loan approval process need not be that way. Metro differentiates itself from most other mortgage lenders by being owned by a senior underwriter. Since only an underwriter can actually approve a mortgage loan, Metro's mortgage loan approval procedures are geared towards our clients starting the process with the person who will make the final decision, the underwriter. This method is faster, more accurate, and eliminates last minute closing surprises.By having direct contact with the underwriter from the start, Metro Mortgage Company ensures you will not spend monies on inspections, appraisals or other costly items without knowing for sure you are approved for your mortgage financing needs. And, if you are looking to get pre-approved before you purchase a home, which is a must in today's real estate marketplace, Metro will provide you with an "actual" commitment letter, typically on the same day you apply for you Florida home loan. Peace of mind about your buying power, and confidence that when you place your offer that you are approved for the monies, indicates to the Seller you are a serious buyer and reduces the stress level when it's needed most.
So, be prepared with your income and assets, sales price, employment history, and knowledge about your debts and then pick up the phone and call us. Just a little preparation on your part will pave the way for a very smooth and quick loan approval.
Home Loan Qualification
Information on Qualifying for a Mortgage
Depending on your personal situation and the type of loan program you are applying for, the underwriter may want documentation on all of the following items.
Verify Down Payment & Closing Costs
Acceptable sources of funds for down payment and closing costs include:
- Cash in Bank Accounts
- Mutual Funds, Stocks, IRA, 401K
- Real Estate Sale Proceeds
- A Gift from an Immediate Relative
- Loans from Your Own Funds (401K)
- Down Payment Assistance Programs
- Seller Financing or Assistance
Assets
Common assets considered in the mortgage loan application process may include:
- Savings Accounts, Stocks, Bonds, Mutual Funds
- Retirement Accounts - IRA, 401K
- Personal Property - Cars, Boats, Jewelry, etc.
- Other Real Estate Holdings
Debts
Review a list of all your current debts. This, along with your credit report and FICO Score, will provide a snapshot of your obligations.
Debt-to-Income Ratio
Your debt-to-income ratio is your gross monthly income divided by the amount you spend on debt. Debt items include mortgage payments (including principal, interest, insurance, taxes, and association fees), car payments, credit card payments, student loans, child support payments, etc. Your lender considers the debt-to-income ratio when approving you for a mortgage loan.
Employment Status
Documentation to confirm your current gross income and provide evidence of stable employment. Documentation requirements vary depending upon a number of factors - including the source of income.
For more specific information on these topics, visit the following pages:
Loan Qualification
Loan Closing Costs
FICO Scores
Mortgage Calculator
Mortgage Shopping
How to Compare Mortgage Lenders
With all the new loan products available, the mobility of the U.S. population, and the cost of homes sky-rocketing - your mortgage is as important as your purchase and requires the same care and consideration. And, you will most likely get the home if you have a loan commitment/approval letter versus a pre-qualification letter. Pre-quals mean absolutely nothing in the lending world and even less to savvy sellers.
Remember what your Mother always told you - "If it sounds too good to be true" - then it probably is. That adage holds true for mortgage financing more than any other industry we can think of. Reputable lenders should be "close" to one another in what they quote you, not far apart. And, if one is extremely low and another extremely high, perhaps you should get the details before making the decision to proceed. So, be sure to request and compare the lenders good faith estimate with others you have received.
One other thing - a good lender will tell you ALL of the charges to acquire your home - not just some of them. It does you no good to focus on a rate quote and then find out later you're short of funds to close the transaction because the lender didn't give you all the information you needed to know.
For specific information on how to compare mortgage lenders, visit this page:
Comparing Mortgage Lenders
Other Considerations for Purchasing with a Mortgage
- Home Inspections
- Understanding the Home Inspection Process
- Home Warranties
- Review Home Warranty Options
- Homeowner Insurance
- Learn a About Insurance Coverages
- Title Insurance
- Learn What It Does for You
- Real Estate & Mortgage Glossary
- Review Real Estate & Mortgage Terms
About Metro Mortgage Company
Metro Mortgage Company focuses on originating residential conventional and jumbo loans for A and A- credit clients including construction permanent and select portfolio financing products. Metro also offers many diverse no down payment solutions and government (FHA/VA) loans for first time home buyers and veterans.The company is privately held and has originated nearly $200M in mortgage loans over the past 15 years. Metro is approved in 20 States to originate and sell mortgages to some of the largest wholesale lenders in the country, including JP Morgan Chase, Wells Fargo and Citigroup to name a few. These types of relationships are what allows us to offer some of the most competitive interest rates available.
Metro differentiates itself from most other mortgage lenders by being owned by a senior underwriter. Since only an underwriter can actually approve a mortgage loan, Metro's mortgage loan approval procedures are geared towards our clients starting the process with the person who will make the final decision, the underwriter. This method is faster, more accurate, and eliminates last minute closing surprises.
Interest Rates
- Interest Rate Quotes
- View current interest rate quotes.
- Interest Rate Locks
- Learn how to lock in you mortgage interest rate.
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Have questions or comments about the home loan process?
nancydodds1 wrote...
My 5 stars for you. Its very informative. Nice lens on home mortgage loans. You can get an interesting information from my lens Mortgage in UK. Feel free to visit my lens.
Posted October 17, 2008
Shadoze wrote...
In order to qualify for a home loan, I had to put down more of a down payment than I had planned. I had experienced some credit problems in the past. Although it didn't stop me from obtaining a home loan, it was enough to make me worry a little. Where would I come up with the additional cash. As much as I hated to do it, I ended up getting a loan from my retirement plan.
Posted April 24, 2008
GreensboroRealEstateBroker wrote...
Benjamin thanks for helping shed some light on the loan process
Posted March 20, 2008
sgrady68 wrote...
Good information, thanks for the read. For more refinance info please see my lenses.
Posted January 13, 2008
Good information about credit card. That's a 5 star rating from me. You can find all type of credit card news from my lens. If you have some time, please feel free to check it out.
Posted December 05, 2007
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