Understanding the Loan Process

By Qingqing Ouyang (’23)

While house hunting can be invigorating, the home loan cycle can be tricky to navigate. Understanding the process can make the interaction much more pleasant. Read below to understand the process of home loans! 

  1. After you sign a purchase agreement for your dream house, you can shop around for a bank or mortgage broker to find out who can offer you the best deal.  The first step is relatively easy, submit your application and the other requirements that go along with it.
  1. Create a list of items to address during the investigations, such as questions, concerns, and more. The examination notes from the previous steps could be asked at this stage, and you should also make sure to address the concerns written down before you purchase the house. 
  1. You need to have a home inspection done as soon as possible. This will allow you to find any issues before the end date, and most importantly to decide if you still want the house after the inspection.
  1. Next, make sure to keep in touch with your bank or mortgage broker. Applying to the mortgage program and completing all the requirements could lead to a restructure endorsement. As a result, more documentation would be needed, so make sure that you know how to respond quickly without hindering your current progress. 
  1. Then, you will need a verification of protection for the house in order to get to the last step, so you must buy homeowner’s insurance. Additionally, while you carry out all these operations, avoid other large purchases or financial commitments that would interfere with current progress as it would put more stress on your bank account and cards. 
  1. Next, evaluate and survey all records, calculations, etc. You will be ready to pay with exact amounts and also know your end costs. 
  1. Finally, make sure to go over any last concerns. Then, you are done, enjoy your new home!

https://www.bankofamerica.com/mortgage/learn/guide-to-the-mortgage-loan-process/

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