Buying Real Estate Property : How to Understand the Home Loan Process

Understanding the home loan process should
not be difficult. I’m Richard Blake and I’m here to help explain the home loan process
to you a bit in further detail. I highly recommend that you contact your local mortgage broker
or your local real estate agent and ask them what the is required of you in order to get
pre-approved for a loan. The documents that your mortgage broker is going to want are
is personal information such as your social security number, your annual income, w-2’s,
1099’s and any monthly debts that you have, such as credit cards, car payments, alimony,
child support, all of these items that are paid for consistently every month. What they
are going to do then is weigh your income versus your debt and come up with what your
pre-approved for ok. Then you know how much home you can afford. Once the mortgage broker
has your information they are then going to submit it to a lender or to a bank. The lenders
actually the one that provides or gives you the money to purchase the home, they are the
ones that hold the note. So at that point in time it goes into underwriting, the information
that you submitted to the mortgage broker now goes into underwriting and you will get
a loan commitment if everything goes through properly. Once you have a loan commitment
then you are free and clear to actually purchase the home and the money and the funds are there
available to you. Ok. I hope that helps you a little bit understanding the home loan process
again the mortgage brokers are going to pre-approve you and then the lender actually gets you
the commitment for the funds to purchase the home. I’m Richard Blake hope you are having
a great day. See you soon.

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