Step 7: Getting the Mortgage Loan

Ten Steps to the Successful Completion of the Home Buying Process

Step 1:       Preparing Your Finances 

Step 2:       Getting Pre-Approved for a Mortgage Loan    

Step 3:       Hiring a REALTOR®

Step 4:       Looking at Homes       

Step 5:       Choosing a Home

Step 6:       Making an Offer on the Home

Step 7:       Getting the Mortgage Loan

Step 8:       Getting Insurance

Step 9:       Closing the Loan

Step 10:    What’s Next?  Protecting Your Investment 

Step 7:       Getting the Mortgage Loan

According to the National Association of REALTORS®, nearly nine out of ten buyers do not have the necessary cash to purchase a home without mortgage financing.  As a result, nearly all buyers will need to obtain a mortgage loan to complete their home purchase.

Even though you had already been pre-approved for a mortgage loan earlier in the process (please refer back to Step 2), this is not the final step in the process and you must complete several more steps to formally obtain a mortgage loan.  During this phase of the process, the lender will order an appraisal of the property to ensure that the amount of the loan does not exceed the value of the home.

The lender will also conduct some more background research into your credit history to ensure that your financial circumstances have not changed since you were pre-approved.  In order to ensure that no problems arise during this period, you should always refrain from applying for any other forms of credit or making major purchases while you are shopping for a home.

As a potential homebuyer, there are many loan products available on the market that may suit your individual needs and financial circumstances.  In finding the best loan product for your individual needs, you should feel free to shop around with multiple mortgage lenders to find the best product with the lowest fees and the best interest rate.

Each of these types of home loans are offered by a variety of lenders, each one with its own unique terms and conditions.  Comparison shopping and good information gathering are the keys to finding the loan that will best suit your individual needs.

The mortgage loan with the lowest initial interest rate is not always the best or least expensive over the long run, so be sure to read the fine print and evaluate its implications over the entire term of your home loan before any contracts are signed.  With time invested in research and comparison, you can find a home loan that will make your dreams of a new home a reality, giving your family peace of mind and financial security well into the future.

For a more detailed discussion on potential financing options, please refer to the Financing Options or Financial Assistance Programs sections of this website.