What is the loan process? Things you can expect when applying

Applying for a loan, whether it????????s a mortgage or a car loan, can be a long and arduous process. Knowing what to expect will make the loan process much easier and less time consuming for the borrower.
To begin the process, the potential borrower is interviewed by the lender at the Longhurst Group. Some questions to expect are how much you make, what outstanding debt you have, how much your bills are and so on. During this process, it is important to remember that the borrower is at the lender????????s discretion.
If the lender has decided to pursue the loan process, the next step is to discuss the type of loan, the price quote of the mortgage and whether or not the borrower can afford it.
The next step in the loan process is for the borrower to provide all documentation needed to verify income, assets, debt and etcetera. The lender will analyze this and may ask for the borrower????????s social security number to view a credit score. This step may take a few days.
Next, the lender will generally decide what type of loan will best suit the borrower. The borrower will be asked if they wish to continue based on the type of loan they can qualify for. If the borrower decides that the loan will work for them, the borrower and lender will move to the next step.
The lender will then prepare a packet of documents including a Good Faith Estimate (GFE) and Truth in Lending (TIL) disclosures. This will include the terms of the loan being offered.
Prices for homes are reset every day, so the lender may ask the borrower if they wish to lock the prices. This will keep the documentation valid, but comes with some risk. The house has usually not been appraised at this point and the title has not been fully searched, which can lead to the lock being invalidated. However, it allows the lender to go on to the next step.
After locking the price, the lender will send out the disclosure package to the borrower. The lender will usually order an appraisal and verify any loose ends about the borrower????????s income and assets. Title insurance needs to be ordered as well to ensure a clean title.
If the appraisal works out, the next step is to close. The closing should begin at least two days before the documents are signed. After everything checks out, the next step is for the borrower to sign all documentation. The loan process will be complete after all signatures are filled.
The loan process can be long and often frustrating. There are many steps where the loan will fall through. However, if the borrower is honest about their income and assets and can easily verify all information, the loan process will be much easier.


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