What Happens From The Mortgage Preapproval To Closing?

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Getting a mortgage loan is usually a necessary step when buying a home, but do you understand the process? Many people have questions about it, and some wonder what happens between the mortgage preapproval process and closing. If you are wondering about this, here are the primary things you should know.

You Get Preapproved

The first thing that must happen when you want to buy a house is that you must get preapproved. This process requires some major steps, and it might take a few weeks, but it is necessary. When the lender gives you a preapproval, it means that you currently meet the requirements for a mortgage loan. They will tell you how much you can borrow, and they will give you an expiration date for the preapproval.

You Must Select a House Afterward

When you have the preapproval, it gives you the ability to start shopping for a house. You can spend the next few days or weeks looking for the right house to buy, and your real estate agent will ask to see your preapproval letter. You should use the preapproval amount to limit your search to homes you can afford to buy.

You Give the Lender the Information About the House

When you make your decision about a house and agree on a price, you can tell your lender which house you picked. Your lender cannot begin processing your loan until this point, as they need information about the house you want to purchase.

The Lender Processes the Loan

At this point, your lender will process your loan. This part of the process takes some time. Your lender will need an appraisal of the house to find out its value. You might need to get some inspections during this time, and the seller might have some responsibilities to complete. When your lender has everything they need, they will send your loan file to the underwriting department. The underwriters scrutinize every detail of your loan application before proceeding with the loan. If everything passes this department, you can proceed to the next step.

You Close on the Loan

Closing on the loan is the final step of buying and house and getting a home mortgage loan. Once you close on it, you take possession of the house. If you have questions about this process or want to get preapproved, talk to a home mortgage loan lender today.

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