Getting a Consumer Mortgage Loan

A consumer mortgage loan is a loan used to purchase a house. Getting a mortgage is an extremely important step for many homebuyers, and the process of getting one can be made easier by knowing what the process involves ahead of time.

Things You Will Need When Applying for a Mortgage Loan

When you go in to apply for a mortgage loan, there are some things you will need to have with you. Most lenders will ask for employment information, W-2s, bank statements and information on any outstanding debts, such as credit cards.

Step 1: Know Your Loan

There are several different types of mortgage loan, each with advantages and disadvantages. Knowing beforehand which kind of mortgage loan will work best for you will give you a leg up when discussing options with your lender.

Step 2: Apply

You may apply for a mortgage loan directly from a lender or through a mortgage broker. Either way, a loan underwriter will go through your financial information and determine your eligibility for a mortgage loan.

Step 3: Property Appraisal

The lender will send an appraiser to estimate the market value of the home you want to buy. This will give the lender an idea of how much money to loan you.

Step 4: Get Insured

Lenders prefer, and may require, that you have your home insured against fire, earthquakes, floods, storms, etc. You will be responsible for obtaining the proper insurance and providing proof of insurance to the lender.

Step 5: Be Sure You Can Pay

Beyond the mortgage payment itself, there are many fees associated with the mortgage loan application process. You will have to pay closing costs, and you will probably have to make a downpayment. You may also be required to pay mortgage insurance.

Step 6: Review All Documents

Upon approval, you will be asked to sign a lot of documents. Make sure you understand what you are agreeing to; take an attorney with you, or ask the lender to give you a day to review the documents before you sign.