How Does the San Jose Loan Process Work?
Before you jump into getting a home loan in San Jose, it’s very smart to familiarize yourself with the basic home loan process.
- Pre-qualification – During this initial stage, the lender gathers information on your income, employment history, credit score, any debts you might have, the purpose of your home loan, and your general financial situation. This is how you find out what types of mortgages you qualify for.
- Prepare a credit report – You want to do this yourself so you can check for errors and get them corrected before you apply. If you have a credit score of 680 or higher, this qualifies you for the best mortgage rates. If your score is under 620, you may want to take steps to raise it before applying for a mortgage. That way you do not get stuck with subprime rates.
- Shop for the best San Jose mortgage rates – This is when you decide if you want a fixed or adjustable mortgage rate. Working with a mortgage broker like Thrive Financial makes it much easier to explore your options and select the best one.
- Fill out your application – At this point you apply for the loan and submit the paperwork to the lender. We can help you with this process so it goes quickly and smoothly. You will then be given your Good Faith Estimate (GFE) and Truth-In-Lending Statement (TIL). This is when you learn about closing costs and fees.
- Await processing – The lender will verify your credit history, bank deposits, and other paperwork. You must provide a written explanation of any negative remarks on your statements.
- Provide the required documents – This is when you submit your pay stubs, tax returns, stock statements, and so on. For home equity loans and other types of home loans, specific documents are required.
- Appraisal – At this point it is time for the appraisal process on the property you want to buy. This involves a combination of approaches. Once the appraisal process is complete, it is possible to come to an estimation of the property’s value.
- Underwriting – Now it’s time to send all the files to the lender. The underwriter checks for completeness. If you need to fill in any information gaps, the underwriter will request more documentation.
- Closing – Once the underwriter approves your loan, it heads to the closing and funding department. The broker verifies your closing costs, and you then sit down with a closing attorney so you can read the loan agreement and sign it.
For any home buyer, particularly a first-time home buyer, this process can seem very daunting and overwhelming. If all goes smoothly, though, it can be complete in around 14-21 days, assuming you have a good credit score—and a great mortgage broker! And that is where we come in. We have extensive experience guiding home buyers through the loan process in San Jose and throughout California. So get in touch with us at (408) 599-3628 or email us at firstname.lastname@example.org to get started on your loan application today!