When you have applied for a mortgage, there are many steps that need to be taken in order to determine the approval or disapproval of the request. The main steps are as follows;
Verification
The lender will confirm your person information in the request by looking at your employment information and your bank account. They will contact your current employer and ask them the relevant questions and they might require that information in writing. They might also ask you for a two month bank statement.
Getting the Appraisal
Your lender will need this so they can decide on the market value of the home you wish to purchase; this information will be used as the collateral for the loan. You are most likely going to be required to pay a fee for this step of the process, but the fee might feature in the closing costs.
Credit Reports
Your credit reports will also be looked into so that they can determine your credit history to see if you are a good payer. You are likely going to have to pay for this service too.
Once this is all done, your lender is required to give you the these documents;
• APR – Annual Percentage Rate Revelation
• ARM – Adjustable Rate Revelation
• Truth In Lending Revelation
• “A Home Buyer’s Guide to Settlement Costs”