The Loan Process
At the application, the lender will ask you some basic financial questions about your current income, debts and assets available for investment in your new home. The lender will review your credit report, along with any verification needed from your bank, landlord or employer. After the initial approval, the lender will order an appraisal of the property to make sure it’s worth the mortgage amount (since it will serve as collateral for the loan).
The days of the 45-day or 90-day loan decision are gone. Now, processing your application is much faster. The information you submit will be joined electronically with a credit report and submitted through financial institution’s automated underwriting system, which automatically determines whether your application meets the requirements for approval.