What is the mortgage process for a buyer?

The mortgage process is one of the most important and time-sensitive issues in a real estate transaction. Once the contract is finalized, you should select the lender, file an application, and request that the appraisal be completed at the property. Most mortgage contingency clauses in a contract provide that a buyer has 30 days to obtain a mortgage. Therefore, you should immediately provide your lender with all the financial information needed for the lender to complete the mortgage process and approve you for the loan.

Many people don’t realize that the mortgage process has changed over the years since the 2008 fiscal crisis. You used to be able to walk into a bank and say, “here are my finances, tell me how much money I can afford to spend on a home.” Then, the bank would pre-approve you for a mortgage. Now, it’s different. You don’t just go to your bank and ask for a pre-approval. You will first have to find a house that you want to buy and then go to the bank and ask if you will be approved for the mortgage to buy it.

When you apply for your mortgage, you will have to bring your accepted offer of the sale agreement, your last two Federal tax returns, the contact information of your employers and a complete list of your debts. When going through the home buying process, you should obtain the assistance of an experienced real estate attorney who can guide you through the sometimes confusing process, especially if this is the purchase of your first home.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.