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Finding Out About Financing

When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.

Finding Out About Financing

From Preapproval To Closing: What Steps Take Place?

by Colleen Porter

Getting preapproved for a mortgage loan program is the first step you must complete if you want to buy a house with a loan. You can do this by choosing a lender and following the steps the lender instructs you to complete. If you get preapproved, it does not mean that you will qualify for a mortgage when you need it, but it is still a vital step. After you get preapproved, you will need to complete additional steps before closing on the house purchase.

Choose a House to Purchase

Once the bank gives you a preapproval letter, you can begin the fun part of buying a house — shopping for one! You can use a real estate agent for help, and you can view several or many homes. The goal is to find the one you want to buy that you can afford. You will need to choose a house before you can move on to the next step.

Agree on the Deal

The next step is reaching a deal with the home seller. You can begin the process by making an offer to buy the house. The seller can respond to your offer by accepting it, rejecting it, or countering it. You might have to go back and forth with the seller before reaching an offer you both agree on, but this is a necessary step. When you reach a deal, you can tell your lender, and they will begin working on your loan.

Get the Appraisal, Inspections, and Title Work

The lender will need to order several things for closing on the loan. An appraisal is one of the things your lender requires, as it shows the value of the home you want to buy. At this time, you must also hire all the inspectors you need for the deal. Your lender will work on the title work and other things, too.

Wait for the Underwriters to Complete the Loan Work

It might take several weeks for the lender to prepare your loan work. Once they finish, they send it to the underwriting department for verification purposes. Underwriters analyze and verify every detail, and you cannot close on your home purchase until they approve your file.

When the underwriters complete your loan file, they will let your lender know that you can close on the home. If you have questions about getting a loan or the steps involved, contact a lender today.