Applying for a mortgage is a massive step towards owning a home, but it’s a process that many find incredibly intimidating. However, once you understand the process and what is needed from you, you should have more confidence in moving forward to buy a home. 

Steps of the Mortgage Process

Obtaining a mortgage is done in steps. These usually are: 

1. Pre-Approval. A loan pre-approval sets you up for a smooth buying experience. They don’t take much time and involve pulling your credit report and credit history. The lender will also be able to pinpoint the loan amount you qualify for. Furthermore, pre-approval lets sellers know you are serious about buying a home. 
2. Finding the Perfect Home. When you’ve found the perfect home, it’s time to make an offer. Your real estate agent will know how to structure the offer. Generally, it will include contingencies that must be satisfied before the deal is complete.
3. Mortgage Loan Application. Here’s where it gets a bit more serious. You’ll need to gather information about employment, income, assets, debts, property information, type of mortgage and any financial blemishes and put together an official application.
4. Loan Processing. A loan processor will gather documentation about you and the property, review all information in the loan file and put together a complete package for the underwriter.
5. Underwriting. The underwriter is the decision-maker. They evaluate all the documentation and check to see if the borrower and property match the eligibility requirements of the loan. They also review your credit history and your capacity to pay back the loan. 
6. Closing. This is the final step. You’ll sign a bunch of documents to complete your purchase. Some of these documents are between you and the lender, while others are between you and the seller. Congratulations! You’re now a homeowner. 
   

For more information on buying a home in Des Moines, contact the Knickerbocker Real Estate Team today.