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Steps to Obtaining a Loan

There are many steps to getting a loan. Below is a list of what to do when looking for a loan and what to expect during the process of your loan closing.

  1. Gather relevant documents for anyone who is going to be on the loan. i.e. W2's, pay check stub, bank & assests statements.
  2. Look for 3-4 lenders online.
  3. Get a quote from each of them all on the same day. Rates change day to day so it is critical to make sure you are comparing apples to apples.
  4. Look for service & availibility, not just fees and rates.
  5. Choose your lender and make sure you have everything in writing from them.
  6. When purchasing a home, you'll want to get an inspection done prior to closing. These can run from $99 - $400 and it is important to be there so they can tell you about how things work.
  7. The whole process from first talking with a banker to closing on your home is typically anywhere from 2-6 weeks.

Different Types of Loans

Depending on the home that you purchase, there will be several different types of mortgages for you to consider. Though these are not all of the options out there, this is what 98% of the residential loans are, that are written everyday to people just like you and I.

  1. Conventional loans? These are your 15, 20, & 30yr mortgages. these have fixed rates for the entire length of your loan.
  2. ARMs - This loan is most commonly found in durations of 3, 5, 7, & 10 years. This means that your loan is still ammortized over 30 years, but the intrest rate is only fixed for 3 to 10 years depending on what ARM you've chosen. Thses loans make a lot of sense for people who know they are going to be in that home for a short period of time.
  3. Jumbo Loans - These loans are typically over $417,000. Recently though, the government passed legislation allowing for homes located in pricey areas to raise this jumbo limit above the $417,000 limit. Your mortgage banker will be able to tell you if you live in one of these counties where the loan limit for conventional loans is higher than the usual $417,000 limit.
  4. FHA Loans - These are becoming much more popular recently due to the more relaxed qualifying guidelines and higher loan-to-value limits allowed. In today's real estate market place, equity is diminishing quickly so FHA loans are becoming increasingly popular as they allow for less equity than traditional types of mortgages. FHA loans require more paperwork from the borrower and longer proccessing times. The rates are comparable to conventional loans.

Referral Network

MK Homeswap has a trusted network of mortgage lenders whom we've worked with over the years that we can refer you to. Please email us at [email protected] or call toll free (888)-739-1784, and we'll introduce you to a professional mortgage banker who is experienced in home swapping as well as your traditional purchases and refinances.