To a new homebuyer the actual financing process
can seem like an endless maze of forms and
paperwork. To help understand the process a
little better, we have outlined below the steps
generally followed in the financing process.
Following that you'll find some of the basic
questions asked by most potential homebuyers
regarding the financing of their dream home.
-
Complete the
loan application. An application fee may be
required by the lender.
-
The Lender
begins processing the application.
-
The Lending
institution requests an appraisal of the home,
a credit report and verification of employment
and assets, such as bank accounts.
-
The Lender will
provide a booklet containing specific
information and a good faith estimate of
closing and related costs.
-
An estimate of
your loan costs, in the form of an initial
Truth in Lending Disclosure Statement is
issued.
-
The Lender
evaluates the application, along with
supporting documentation, and approves the
loan.
-
The borrower
signs the closing documents and the loan is
funded.
-
The Lender
disburses the funds to the settlement or
closing agent (usually the escrow officer).
The Seller is paid his/her monies and title to
the home is yours.
-
Within a day or
two appropriate documents are recorded at the
county recorder's office and the transaction
is final.
The
Financing Process