Home Apply Contact Home Equity Loans Challenged Credit Programs First Time Homebuyers
The 1-2-3 of Closing Your Home Loan
Closing Your Loan Easily    
Business News From The Motley Fool
To provide you with financing for your home purchase your lender must follow three steps:

1.) Pre-qualification - Determining the limits of your borrowing power and working out any credit issues that may exist.

2.) Pre-approval - The actual credit approval of your loan. This gives you a firm commitment from a lender that you can take with you when shopping for a home.

3.) Closing - A third party (escrow or an attorney), chosen by you and your seller, coordinates the paperwork needed to fund your loan and providing good title to you.

Paperwork From You

Here are the things your lender is going to need to get the ball rolling on your pre-qualification and pre-approval:

1.) Earnings statements or proof of self-employment (i.e. W-2 forms, pay stubs and tax returns)

2.) A copy of the purchase contract (if a purchase) signed by you and the seller. This provides your lender with necessary details about the closing date, costs paid by the seller, etc.

3.) Information about your debts, such as the balances, monthly payments, etc. This includes: car payments, credit cards, child support paid out. It does not include utilities, insurance premiums, etc.

4.) Evidence of any other mortgage and/or rental payments.

Closing - The Final Step

After you've applied for and been approved for your home loan, you can finally set a date to close on your new home. At the closing, your first mortgage date is set and you are given the keys to your new home. Here are some of the hurdles to be crossed in the closing process:

Title Search and Insurance - To protect all parties concerned a title search is done on the property to insure that there are no defects in the title that will hold up the sale. The defects can range from liens to judgements to other legal claims, which may be legitimate or fraudulent. The insurance also protects a lender from a fraudulent sale.

Survey - A survey is usually performed by the title insurance company (always in the case of ALTA type policies) on the property. This survey insures that the property lines are correct and that the improvements do exist.

Homeowner's Insurance - This insurance policy protects your new home from fire and other disasters. Other coverages are available from the agent of your choice. 

 

| Home | Programs | Rates | Apply | Contact | First Time Homebuyers | Refinance |
| Mortgage 101 | Buying a Home |

© 2005 Copyright Janus Mortgage  Terms and conditions apply.  Please see our privacy policy for information about how we protect the information you give us.  All rates, programs and fees are subject to change.  Janus Mortgage is a Real Estate Mortgage Broker licensed by the California Department of Real Estate, license number 01078456.