Keep the mortgage loan processor checklist in mind when making financial decisions to help you analyze the financial conditions and compare different offers. Taking the decision to own a property or home is easy. Most people think that the next step is to pick a house and the furniture that goes with it. But unfortunately that is not the case. What comes next can be a challenge most of the time as purchasing a house is not a bed of roses.
There are many things that need to be considered, understood, and tested in order to be able to make the final decision. In order to simplify things and make the whole process easier it is important to ensure that it is divided into several different parts. By doing so, things can become a lot less complicated. This way a person taking a loan can make safe financial decisions. This is a quick guide or checklist for the mortgage loan process.
Mortgage Loan Process:
1. Assess Your Financial Condition
This should be the first thing to consider when making the decision of purchasing a house. It is important to know where a person stands in terms of finance. Get a clear picture of your monthly income, annual savings, cost of living, and any other form of savings available. It must be known what mode of payment will be used for the purpose of down payment. It must be clear how and what a person will pay as down payment for the mortgage. As the first step for a mortgage loan processor checklist, an in-depth assessment of personal finances will give a complete picture of the financial situation.
2. Analyze Credit Reports
The next step in the mortgage loan processor checklist is to get personal credit reports in order before applying for a loan. The credit bureau files such as TransUnion, Equifax and others) need to be proper. If there are any corrections to be made, any updates to be discussed or any errors to be fixed, they must be done so before applying for the mortgage loan. This can prevent any delays in applying for a mortgage and prevent all sorts of confusions.
3. Know Your FICO Score
FICO Score plays an important role in the mortgage loan processor checklist. It is the most important credit score. By receiving the FICO Score, the eligibility criteria can be fulfilled. For example, a FICO score of 740 will ensure that the best rates and fees of mortgages are offered.
4. Analyze Mortgage Types
Longer years of mortgages are paid off differently as compared to those with shorter years. Each has their own positives and negatives attached to them. It is best to find the mortgage which suits the personal situation of the person best. Some loans are easier to pay off as they have little interests attached to them and with little fluctuations. On the other hand, some loans have interests attached to them which fluctuate and increase over the years. As a part of the mortgage loan processor checklist, it is important to thoroughly analyze all the types of mortgage available.
5. Compare Mortgage Offers
Just like shopping for anything, it is important to go out and compare the different mortgage offers which are available in the market. Explore the offers made by different lenders in the market to be able to pick out the best one available. Do not hand out every detail of your personal information to every lender. Instead share only that which is the basic requirement. Compare each and every aspect of the offers being made. Check the different interest rates being offered, the loan payment amounts, and every other minor detail as well.
6. Selecting the Best Lender
When working through different lenders, it is important to keep the following things in mind.
- The term “Points” is used by lenders in order to charge for their service in providing a loan on interest, as per the credit risk of the borrower. This amount should be set very carefully and as per the living conditions of the buyer.
- Annual purchase rate needs to be considered as well.
- It is important to know beforehand the amount that the lender will provide as per the financial information given to the lender.
- The time it will take from applying for the loan to actually receiving the loan.
- Discuss any hidden or extra charges which are commonly known as junk fees. These charges need to be known beforehand. Once they are known, it is important to compare these prices with all the lenders.
- Do not just pick a lender because their services and offers seem satisfactory. Instead, look for people who have had experience with the lender previously. Ratings by previous customers need to be checked. This will ensure the authenticity of the lender and ease out the whole process.
7. Take Pre-Approval Letter
As per the mortgage loan processor checklist, once the lender has been finalized, it is important to take a pre-approval letter. This will help in showing the buyers that a financial backup is available.
8. Buy the House
The next step on the mortgage loan processor checklist is to pick a house and then finalize things with the seller of the house. Get the contract ready and then make it a part of the application given for the loan.
9. Keep an Eye on Mortgage Status
Once the whole process is complete, it is important to know the status of the mortgage. The appraisal amount should be equivalent to the amount needed for the loan. All the problems should be forecasted and resolved beforehand. All documentations must be complete at all times.
10. Keep a Settlement Sheet Copy
In the final steps of the mortgage loan processor checklist, it is important to read out the settlement sheet and keep a copy of it with yourself. It is important to compare and check each and every aspect, amount, and rates several times thoroughly. If any difference is identified, it must be catered immediately and corrected on spot so that no confusions exist in the future.
11. Finalize Mortgage Contract
The last step of the mortgage loan processor checklist is to finalize the documents. Everything needs to be checked and rechecked. Contracts need to be read out, shown to a lawyer, and thoroughly understood in order to ensure minimal discrepancy or future complications.
The mortgage loan processor checklist is a very easy and simple to follow strategic check-list. The whole process can be confusing and time consuming. It is important to ensure that every step is thoroughly understood and checked before finalizing everything. By following everything on the check-list a person can easily acquire the mortgage on the house that they need. This can reduce all kinds of complications that may come in between the mortgage and lending money from a lender.