An Overview of How to Obtain a Mortgage Loan

The most important step in buying a home is getting approved and obtaining a mortgage loan.  Without one most potential buyers cannot purchase a home.  Because this is so important you want to take some time to make sure you understand what the process is. 

The first step should be to get pre-approved for a loan.  This will give you an idea of how much you can afford to spend and will show agents and sellers that you are serious and able to buy.

Once you find a home you like you will want to make an offer.   If the sellers agree with your offer they will accept it and a contract will be written-up.

Once there is a contract in place your lender will request any additional information needed to secure the loan for you.  At this time you will need to decide what type of mortgage loan you would like and figure out what the terms of that loan will be.  For more information on specific types of mortgages please visit the mortgage page of our website for additional articles.

The lender will then order the title and have the property appraised.  The property will need to be appraised to be sure it is worth the amount the loan is being written for.  The title company will also make sure there are no current liens on the home. 

Once everything is complete and approved the title company will prepare a HUD-1 statement that will explain all the money that is needed to be brought to settlement.  You will then go to settlement and sign all the papers which will complete the loan.

This is a very basic and broad overview of the process to obtain a mortgage.  Please see the mortgage page of our website to find many articles with specific details of each step of the process.