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Recognizing the Loan Application Interview Process

Buying a home may be the most electrifying, perplexing and straining financial transaction that some ever undertake. Even if you have done it numerous times you can still find the process intimidating and complicated, particularly when it comes to getting mortgage financing. Countless loan documents, novel terminology and ambiguity serve to deflate the joy of buying a new home. As soon as the sales contract is ratified, obtaining the financing for the purchase becomes pre-eminent for all but a very few home buyers. If you understand the steps required to qualify for a mortgage loan, however, much of the stress can be avoided. The following explanation of the loan application interview process is intended to help you through the intricacies of securing financing.

The Loan Application Interview

Once you have selected a mortgage broker, the next step will likely be a meeting with a loan officer or other lender representative, whose job is to begin the attaining of information the lender requires to approve the mortgage loan. They will paraphrase the types of mortgage loans available to you, the interest rates and fees for each type and the qualification requirements. During the meeting, the loan officer will fill out, or assist you in filling out, the loan application form.

Most lenders will offer a range of interest rate/point combinations to meet the borrower needs. In general, the higher the interest rate, the lower the points. For example, if the current market provides for an 8.5 percent interest rate with 2 points, a nine percent rate may be offered at no points. If you are a corporate transferee, however, your company's relocation policy may pay all or part of origination costs and the lower rate will have more appeal. The loan officer is prepared to explain all of the mortgage information and your options to you when buying a home.

Robert Earl - Founder of The Earl of Real Estate Team is a Real Estate Entrepreneur & Real Estate Coach based in the Northern Virginia. The Earl of Real Estate Team specializes in Reston VA Real Estate & Condos for Sale

posted by allzq @ 6:23 PM