Everyone desires to buy a new home, although the mortgage loan processing behind the same is staggering. The reason why you need to be more aware of the steps involved in the same cannot be denied, as this facilitates smoother processing for your mortgage loan.
Nowadays, offshore outsource mortgage processing support services or companies are in plenty who have been aiding mortgage lenders efficiently and cost-effectively. Lenders were able to narrow down their back-office hassles and internal operational expenses by outsourcing mortgage processing support services.
The picture draws how complicated loan processing for a mortgage can be and that it requires keen attention for achieving accuracy, and timeliness – a specialty in mortgage process outsourcing. So, for you to get your loan approved in an expedited manner, and for better knowledge about the same, there are some things you need to be aware of.
Below are the things you need to be aware of and things that would act as a loan processing support from your end to the lenders, even if it is small, yet, crucial:
1. Submission of Application
You’ve found yourself your dream home, and are ready to buy it. But how? The initial step in mortgage loan processing to get a hold on your dream home would be to consider a suitable lender. The lender will need a complete application form submitted from your end that states your income, debts, and assets, along with the essential supporting documents.
2. Call in an Expert for a Home Inspection Routine
Make sure you carry this schedule right away with an expert, as it will be beneficial for you before the closing time in terms of time. How? If the inspection finds out any unforeseen issues with the property you can negotiate the price with the seller, right away.
How Important is a Home Inspection Routine?
Since Home Inspection is an additional expense, first-time homebuyers generally don’t take it seriously and decline it. The problem is that there would be certain unnoticed property issues that can only be detected by a professional’s support. This is highly important when buying an existing home compared to a newly constructed one, that might have a builder’s warranty. If the inspector detects huge repairs, you can negotiate the price with the homeowner accordingly or have everything fixed. If the price is adjusted based on the issues, you will have extra funds to carry out the repairs when you own the property.
Make sure you have questions on things you have doubts about or keep a handy checklist of things with you which you want information for. A proper and expert home inspection will bring your attention to the property’s associated issues, defects, or even its positive aspects. The final inspection report will help you determine whether to negotiate with the seller regarding the issues, as every deal is different, and holds the potential for negotiation.
3. Always be Responsive to Your Lender
Always maintain a prompt response to your lender once you have a qualified mortgage application. The approval will be conditional, and if your lender requires additional documentation, be unhesitating and timely, that will benefit your mortgage application.
4. Make sure you have purchased the homeowner’s insurance, which will be required by the lender as proof of insurance. It is a deciding factor for your loan to receive its final approval.
Homeowner’s Insurance – Know These 5 Important Things
- Be aware of the exclusions in insurance coverage. This is because most policies exclude the standard flood or earthquake cover, and it should be bought separately.
- Insurance claims will have limits as to how much money (dollar limitations) your insurer will pay you for a, even if you have risk coverage. A common example would be the limited amount paid for stolen jewelry. Although if the items are insured separately, there won’t be a limit.
- Know how much is your replacement cost – the maximum amount you will receive if your property is destroyed. Make sure this amount is sufficient and not less than your property’s worth.
- If your property is destroyed, but you don’t want to replace it, then make sure you know about the actual cash value. This cash value will help you receive the replacement cost, less depreciation for your home.
- The liability in your homeowner’s insurance will generally cover you for accidents that occurred to other people on your property. This will be medical care, court costs, and awards by the court. It is also common for this type of coverage to have an upper limit to the amount of coverage provided. So, if you have a significant amount of assets, make sure your insurance can cover it.
5. Be patient for the process to work out, and make sure you fully know about what’s happening behind the scenes. An appraisal will be carried out by the lender for your home to ensure your home value is in line with the buying price. The appraiser’s visit will be followed by a comparison with recently sold homes that had a similar price range. A title search will also be done by the lender to ensure the property is free any outstanding liens.
6. Refrain from taking on new debts while your mortgage loan is in process. This means to avoid opening new credit card accounts or making any major financial changes. This is because these new financial changes will affect your debt-to-income ratio, which will hamper your mortgage approval.
7. Make sure you have locked in the mortgage interest rate with your lender in not more than 10 days before your closing date.
8. There will be a review of your documents by the lender once your mortgage loan is approved, and all other processes such as home inspection, home appraisal, and title search are completed. After this, your lender will set a closing date for you and will let you know the exact money you’ll need to bring at the time of closing.
9. Arrange to pay your down payment and closing costs. You’ll need to get a cashier’s check or arrange to wire money to cover your down payment and closing costs. Estimate your closing costs Makes sure you have arranged the payment of your down payment and closing costs. For this, you will require either a cashier’s check or a wire transfer method. Ensure the payments are on-time and prompt.
10. At the time of closing, make sure you have read all the received documents and that you have cleared all your doubts regarding the terms of the agreement. Upon signing on all the documents, you are ready to receive the key to your new home.
The above 10-step process is the ones carried out in mortgage loan processing. And as a borrower, you should be up to speed and thorough with all the happenings. With offshore mortgage process outsourcing companies all over the world, lenders can expedite your loan processes effectively with their outsource mortgage processing support services. All this will contribute to a good loan processing support.