HOW TO GET A MORTGAGE

Mortgage Process Tips in New Jersey

When it comes to the loan process, there are several steps that one will encounter. By making yourself familiar with this process, you will better understand the requirements and feel more prepared during this stressful time. The more knowledgeable you become, the more comfortable and in control you’ll feel.

1. Organize Your Documents

Your lender will require certain documentation from you to make sure that you will have the ability to repay the loan you take out. Such documentation includes proof of employment, credit history, tax returns, pay stubs, bank statements, divorce and child support statements if applicable, and any other information that the lending company feels might be necessary.

2. Qualification

Before you apply for a loan, getting qualified will help you establish how much you can borrow. When purchasing a home, there are two options one may choose from to qualify for a loan. The first option, pre-qualification, is a quick process that usually happens in a matter of minutes. While pre-qualification is helpful, your other option – pre-approval – is more beneficial and gives you better leverage when negotiating with the seller. Getting pre-approved also lets you focus on homes within your price range instead of wasting time looking at homes that you won’t be able to afford. Finally, when it comes time to close, the process will go rather quickly since your loan has already been approved.

3. Find the Right Loan Program

While searching for the right loan program, there are many things to take into consideration. For example, you might want to think about how long you plan on keeping the loan. The length of your residence will determine the type of loan you want to get (i.e. adjustable or fixed). To determine the best loan program, one will need to compare different programs and the involvements of each program such as rates, fees and points. The whole process can be tedious and difficult at times, but a qualified loan officer can help you make the right decision.

4. Obtain Loan Approval

The process of obtaining loan approval involves the following steps:
Review of loan application (Be sure to fill it out completely).
Verification of credit history, employment history, assets such as bank accounts and mutual funds, property value and any additional information that the lender might require

There are also a few things that you can do to improve your chances of getting the loan approved.
Respond promptly to any requests of additional documents and information.
Do not make any major purchases such as a car or new furniture until the loan is closed. Increasing your debt can have the opposite effect on your application.
Make sure you will be in town for the closing date. If you cannot be there for the closing of the loan, carry out a power of attorney to authorize someone to sign on your behalf.

5. Close the Loan

Once the loan is approved, your next step will be to sign the final loan documents in the presence of a closing agent. Be sure to verify the information within the document, especially the interest rate and loan terms. Also, check to see if your name and address are correct. Finally, don’t forget to bring a cashier’s check for your down payment and closing costs.

Call Us Today!
(973) 887-2500