It can be thrilling to house hunt and find the perfect property. It's not as easy as it sounds. Here's a quick overview of the mortgage industry. If you want to know more about the mortgage process or find good mortgage lenders in Elk Grove browse the internet.
A Guide to the Mortgage Process
You have some money saved up for a downpayment. You've started looking for a house or found the perfect property. Now it is time to get a mortgage or enter the world of financing. It might be helpful to have a basic understanding of the mortgage process before you enter the maze.
A mortgage is simply a debt instrument that secures a loan of cash to you for a home. The lender will place a first lien on your prospective home in return for the loan amount. To recover the amount owed, the lender may foreclose the house and force you to sell it.
The process of applying for a mortgage or originating a loan is called "originating a loan". First, find a lender that you feel comfortable with to originate the loan. A bank relationship may be enough. A mortgage broker is a good choice to help you find the right loan for your needs. Different lenders offer different terms and loans.
You will need to fill out a loan application as part of the loan origination process. You may be asked to provide documentation that supports your income claims, depending on the type of loan. Although there are no partial or full-document loan applications, most people do not qualify.
After your application has been submitted, a lender will likely request additional information or documentation. The lender will either decline or approve your application depending on the outcome of the underwriting process. The lender may add to the loan a clause that addresses concerns it has.