WHEN AND WHERE TO APPLY FOR A LOAN?
There are many sources for home loans including banks, credit unions, mortgage companies, and mortgage brokers. You may consider asking friends and relatives or your real estate agent for recommendations. Knowing what you can afford before you begin looking may give you more bargaining power when negotiating with a seller.
WHAT IS A HAZARD (OR FIRE) INSURANCE?
Hazard insurance covers the dwelling itself and may be required for your home. Your lender or real estate agent may explain the necessary hazard insurance coverage to you. If you are buying a condominium, ask if a master policy will be included with your unit.
CONTACT YOUR INSURANCE AGENT EARLY
This coverage may need to be provided so the closing/settlement agent can release loan funds to the escrow company. Order your insurance as soon as your loan is approved; then furnish your closing/settlement agent with the insurance agent’s name and phone number.
When you talk with your insurance agent, ask about additional coverage in a homeowner’s policy to insure your personal belongings and protect against liabilities.
WHAT HAPPENS AFTER LOAN APPROVAL?
After loan approval and prior to your planned closing date, you will receive a Closing Disclosure from your lender with details of the final loan terms and closing costs. Your closing/settlement agent may also prepare a separate Settlement Statement which indicated what funds go where and how much money you may need to bring to the closing appointment.
WHAT YOU MAY NEED FOR THE LOAN APPLICATION
- Addresses of residences for the last two or more years
- Social Security number
- Driver’s License or other valid ID
- Names and addresses of employers for the last two or more years
- Two or more recent pay stubs showing year-to-date earnings
- Federal tax returns for the last two or more years
- Checking and savings account statements for last two or more months
- Debt: names, addresses, account numbers, and payment amounts on all loans and credit cards
- For a VA loam, Certificate of Eligibility or DD-214s
- Divorce decree if applicable
- Letters of explanation regarding credit inquires or special circumstances
- Funds to pay for credit report and appraisal
We hope you found this information helpful! If you need any further assistance do not hesitate to get in touch with 110 Title at (985) 674-5044.