How Do I Apply for a Home Loan?

You have decided that the market is right, and it is time for you to purchase your first home. First, Congratulations! Purchasing a home is one of the biggest life events that you can take part in, and owning a home can feel like a big step toward truly gaining your own independence and living the life that you choose. However, before you can pick up the keys, there are some things that you need to get in order first.

Check Your Credit

Having an accurate credit report is a critical step to take before you even talk to a lender. Reviewing your credit report can reveal potentially damaging items that should not be on your credit, or allows you to settle any outstanding accounts before they come up with your loan officer.

There are a number of different places that you can request your credit report. Some of these may charge a fee, but you can often find it for free online, and you have the right to get your official credit report once a year free of charge. Once you have your report, take a look at all of your accounts. Ensure that the accounts are accurate and current. If you notice some errors, you can often contact the debtor directly to have them removed or changed, or you can file a dispute online.

In addition to reviewing your credit for errors, you should also look at your credit score. Your credit score does not just affect your ability to buy a home, but also your interest rate. An accurate report can save you tens of thousands of dollars over the life of your mortgage.

Talk to a Lender

Once your credit is clear, set up an appointment with a proven lender like Blue Horizon. You may already know which house you want to purchase, or if you are just beginning to look at houses, you might have a ballpark price range. If you know the actual value that you need to finance, you can get a pre-approval letter for that amount. However, if you do not know how much you want to finance, talk with your lender about what you can qualify for. This information can be helpful to share with your realtor so they can find you a home that is within your budget.

Applying for the Loan

The application process with Blue Horizon is actually a simple process. You can simply work with one of our loan officers to complete the application. You may need some supporting documentation to verify certain aspects of your current income or clear standing with creditors, but we can help you get together the documents you need.

Once your application is complete, we can also talk about the different types of loans that you qualify for. These loans have different qualifications that can depend on your history (military), or your location, or even the type of home you are purchasing. For new home buyers, there are also a variety of different options that may help you walk into the door of your new home.

Find the Home

Once you are pre-approved for your loan, work with a realtor to find the home of your dreams. When you are ready to submit an offer a home, we can provide you with a pre-approval letter for your offered price. This allows sellers to know that you are serious. In addition, you may need to put down a deposit called earnest money to secure the house. This money is a good faith investment to your commitment to the process, but you may lose it if you decide to back out on the sale.

Once your offer is accepted, we will work with you to finalize all of the details. Usually, the closing date after an accepted offer is anywhere from 30-45 days. While this may seem like a long time, there is a flurry of activity that must take place so that you can get the keys, but our talented staff can help you navigate the course.

Overview

If you are considering buying a new home, let Blue Horizon Realty and Lending Inc in Escondido, CA help take the load off by handling your loan process. Call today to see how we can help (760) 891-4500.