Articles

Buying a home may be the most thrilling, bewildering and straining financial transaction you ever undertake. Even if you have done it numerous times you can still find the process intimidating and complicated, particularly when it comes to getting a mortgage loan. Countless loan documents, unfamiliar terminology and uncertainty serve to deflate the joy of buying a new home. As soon as the sales offer and contract is accepted, taking on the financing for the contract becomes paramount for all but a very few buyers. If you master the steps required to qualify for a loan, however, much of the stress can be avoided. The following explanation of the loan application interview process is intended to help you through the complication of securing a mortgage.

The Loan Application Interview

Once you have picked a mortgage broker, the next step will likely be a meeting with a loan officer or other lender representative, whose job is to begin the collection of information the lender desires to approve the loan. They will annotate the types of mortgage loans available to you, the interest rates and fees for each type and the qualification requirements. During the meeting, the loan officer will fill out, or assist you in filling out, the loan application form.

Most lenders will offer a range of interest rate/point combinations to meet the borrower needs. In general, the higher the interest rate, the lower the points. For example, if the current market provides for an 8.5 percent interest rate with 2 points, a nine percent rate may be offered at no points. If you are a first-time home buyer, the larger monthly payments on the 9 percent loan may be easier to handle than the 2 points that will require additional cash at settlement. The loan officer is prepared to explain all of the mortgage information and your options to you when buying a home.