Buying a condo or apartment in Florida is a significant investment. It can impact your finances as well as your entire life. With so much involved in the loan application and the complexities on the way, the process can get challenging, especially for first-time buyers. Mortgages are quite like loans. There is some money borrowed, a rate of interest to be paid, and a fixed repayment time. However, the only difference is that mortgages are specifically used for real estate transactions and are customizable.
So, hire a local, experienced mortgage broker who can smoothly guide you through the mortgage lending process mentioned above and make your home-buying experience hassle-free and exciting.
Step 1: Take Mortgage Pre-Approval
With a mortgage pre-approval, it is easy to tell the sellers that you are not fooling around and are serious about making the purchase. So, please fill out an official application and provide your bank/lender with the desired financial documents and a credit report to get it.
Step 2: Submit Loan Application
You can officially start your house-hunting journey when you are pre-approved for the loan. Once you find your dream home, you can apply for some documents from the bank and wait until they get processed.
Step 3: Get a Loan Estimate
Within three days of your loan application, you receive a loan estimate describing the terms and associated costs. It also includes the interest rate and monthly payments, such as principal, interest, taxes, and insurance.
Step 4: Wait for Mortgage Processing
This phase opens all the information related to your finances, loan, application, and documents. Your tax records, employment letters, bank statements, purchase agreements, and home appraisal reports are also requested for further evaluation.
Step 5: Receive Underwriter’s Decision
A mortgage underwriter is the final decision maker who passes or rejects your residential mortgage application after carefully reviewing the documentation. They are ultimately the person who sees if everything complies with the standards and fits the guidelines.
Step 6: Lock in Loan Interest Rate and Terms
Your underwriter also locks in your interest rate and loan terms. The maximum loan repayment duration is fixed, and whether the interest rate is adjustable or fixed is decided. Doing this is crucial because there can be a risk of interest rates rising later without locking in an interest rate.
Step 7: Obtain Loan Approval
When the underwriter is sure that there is no problem, they let the process move forward and finally grant you approval. Your loan is signed off, and it is cleared to close, allowing you to purchase the home you desire.
Step 8: Close the Deal
This is the final step of the loan process. Documents are printed and sent to the title company, and a meeting is arranged to finalize the transaction. A “closing disclosure” is settled that has details such as the projected monthly payments, loan terms, fees, closing costs, etc.
