What To Expect After You Apply For A Mortgage Loan To Buy A House

Getting approved for a mortgage loan is not always an easy task, and it is something that does not happen overnight. Instead, it is a process that can take weeks, in some cases, and it can involve a lot of work on your part. If you just applied for a mortgage loan to buy a particular house and are wondering what to expect, here are several things you should expect during the next few weeks.

The Lender May Ask for Additional Documentation

When you apply for a loan, your lender must process your application and send it to a department known as underwriting. Underwriters fully investigate every detail of a person's finances and credit, and they are great at uncovering things you never knew existed. If the underwriters find anything in your past that seems questionable or that they do not understand, they will ask your lender for additional documentation on it.

An example of this might be an old debt you have on your credit report. If there is no proof on the credit report that you paid this debt, the underwriters might ask for documentation that shows you paid the debt. In this case, you would have to provide a canceled check, receipt, or any other type of document that shows you paid it. If you cannot prove you paid it, you may have to repay the debt before you can get approved for a loan.

The Lender Will Need to Verify the Value of the House You Are Buying

Next, the lender must verify the value of the house you are buying before fully approving your mortgage loan. This is completed by hiring an appraiser to visit the home and determine the home's value. Your loan amount and approval will be dependent upon the appraisal coming back with a value that is high enough. Typically, the value of the home must be at least as high as the amount you are paying for the home. If the appraisal is not high enough, the lender may either deny giving you a loan for the house or may require that you put more money down in the form of your down payment.

There are additional steps that lenders must also complete during this process, and that is why it can take weeks before you can actually get the loan. If you would like more information about the mortgage loan process, contact a lending company like Attorneys Funding Group, Inc today.

About Me

Learning About Loans and Financing

Hello, my name is Janessa Jarvis. Welcome to my website about loans and financing. On this site, I want to help you learn how to approach the loan application process. Acquiring a loan can help you make big purchases that would otherwise been inaccessible in the long run. You must approach the loan application process with purpose or you could end up confused about the proceedings. I will help you understand how to fill out your loan paperwork and submit the documents for a quick decision. Please feel free to come by my site daily to learn more. Thank you for coming by.

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