Most of our South Florida readers know that the mortgage application process can be the most grueling part of buying a home. Every individual or couple who is in the market for a mortgage will present a unique financial profile to lenders and banks and, as a result, different applicants will receive different loan terms and interest rates. But, what is the mortgage process like from the lender's point of view?
As many of our readers would likely expect, many banks and lenders look at the mortgage application process in a step-by-step framework. There are a lot of banks out there, but most probably follow similar approaches when screening potential mortgage holders.
First, many banks will encourage applicants to get pre-approved for a mortgage. This step in the process is basically a kind of first glance screening of applicants with just a few financial details provided. However, banks are able to use these details to give applicants an indication of whether they would be approved, as well as providing an idea of how much of a loan amount could be approved.
Next, after applicants find the home they want, they will need to gather up all of the necessary financial documents and go through the full mortgage application process. This step will include proving your identity and providing verification of your financial assets and income. Once this step is successfully completed borrowers will be able to lock in their interest rate and continue their march toward closing on their new residential purchase. But, as many of our South Florida readers can probably guess, there is a lot of legal paperwork that needs to be reviewed throughout this process. Getting the right information before, during and after the mortgage application process can be beneficial.
Source: Citizens Bank, "The Mortgage Process," Accessed Dec. 13, 2015