Guest Blog By: Karl Kennedy
You finally found your dream home. It has everything on your list. You’ve toured the home, know that it meets your criteria, and you’re ready to make the sellers an offer. Before you call the real estate agent there’s one more step to complete.
Unless you have a healthy bank account, you need to apply for a mortgage. It’s a little more complicated than filling out a credit card application. To help you navigate the paperwork, here are a few tips on how to apply for a mortgage.
Mortgage Application Preparation Steps
While real estate agents and home sellers prefer that you are at least pre-approved for a loan, you can still make an offer if you haven’t started the mortgage application process. If you do wait to start until after making the offer, you should know that you are now on a very tight schedule.
You only have 45 days from when the offer was made to be approved for the home loan. To meet this deadline, you should have already taken a few steps.
- Check your credit score. For rapid mortgage approval, you need a strong credit score. You also want to take a look at your credit report. You can request three free ones a year. Make sure that there aren’t any errors, as it can take several weeks to remove them.
- Familiarize yourself with the types of mortgages available so you know exactly which one to apply for.
- Compare various lenders. Interest rates will vary and you want to get the best terms for your mortgage.
- Get pre-approved for the loan.
- Gather the loan paperwork for easy reference.
Once these steps are completed, you’re ready to start looking for your Las Vegas dream home.
Mortgage Application Steps
The first step is to fill out the mortgage application. Your lender will supply the form. You might be able to fill the paperwork out and submit it online which can make the process a little less time-consuming.
If you have trouble filling out the form, your lender is there to help. If the application isn’t filled out correctly, you may have to start over again. Unfortunately, this does not restart the 45-day deadline.
Once the application is completed, there are a few other things you should do while it’s being processed.
- Schedule a home inspection. This is important and most financial institutions won’t approve a home loan without one. The purpose of the inspection is to check if the sellers disclosed all information regarding the home’s condition.
- If your lender requests additional documentation, deliver it promptly to avoid delaying the loan approval process.
- Have the home insured. Before your mortgage application is approved you must have homeowner’s insurance.
- Be patient. It will take a few weeks for the mortgage lender to have the home appraised to ensure it is worth the loan amount. The lender will also perform a search to ensure that there are no other existing titles for the home and that it is free from liens.
- Your interest rate should already be locked in. If it’s not, you must do this 10 days before the closing date.
The final step, once your loan is approved, is to set the closing date. At the closing, you will need to have a cashier’s check for the closing costs and the down payment. After signing the necessary paperwork the keys to your new home will be handed over and you can start moving in.
Moving into a new house is also a great time to make some upgrades. One of these might be to add a 4k projector to your entertainment system. Not only will you enjoy it, but it can also increase the value of the home you just purchased.