The Life Cycle of Your Mortgage Loan Application

For some home buyers, anxiously waiting for the decision on their home loan application can seem like it takes forever. In reality, it doesn't take that long from the time the application is submitted until it gets approved or rejected.

These are the basic steps for the mortgage loan application process:

• Meeting with a loan officer. During this meeting, you’ll provide the loan officer with information on your financial situation. The loan officer can give a rough estimate on what you might qualify for, which is known as a pre-approval.
• Completing your application. You’ll need to gather up the information required for the application, such as bank statements, tax records and W2 forms. You’ll also need to hire a local appraiser to determine what the home you’re interested in is worth.
• Submitting your application. Once you submit your mortgage application, the lender has three days to look it over and give you a good faith estimate, which has information on the loan, fees and terms offered, and a truth-in-lending form, which lets you know the loan’s annual percentage rate.
• Having your application reviewed. After you receive the documents from the lender, they pass your application over to processors for a closer inspection. These processors look for any information that indicates that you might be a risky applicant.
• Waiting for the underwriter’s decision. The underwriter is responsible for deciding whether your mortgage application should be approved or rejected. The underwriter also ensures that your application meets mortgage lending guidelines.

The mortgage loan application process can take as little as a few days if your situation is a simple, straightforward one. It might take a little longer if anything questionable appears on your application.

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Most Common Remodeling Project: Baths vs. Kitchens

Remodeling isn't just for homeowners who are tired of their home’s current look. These projects also boost the home’s value, which is a big advantage whether you’re getting it ready for the market or just settling into a new home.

The most common remodeling projects involve making changes to bathrooms and kitchens. This really isn't surprising if you consider the fact that buyers usually focus on these rooms the most when looking for a home to purchase. Bathrooms have a slight edge over kitchens when it comes to which remodeling project is the most common. The National Association of Home Builders’ 2013 Remodeling Market Index survey showed that 72 percent of respondents had bathroom projects done, while 70 percent had their kitchen remodeled. Bathrooms and kitchens are always among the top remodeling projects on these surveys, but at one point, kitchens were ahead. In addition to being the most important rooms for buyers, kitchen and bathroom remodeling projects also typically yield a high return on investment, meaning that you’re more likely to get back all or most of the cost of these projects when you sell your home.

While bathrooms and kitchens are the most common remodeling projects, there are a few other types that are also done quite a bit. These include replacing doors and windows, remodeling an entire house, adding a room, installing a deck and repairing damage. Whether you’re preparing to sell your home or planning on fixing up a new home, keep these kinds of projects in mind, along with kitchen and bathroom remodeling projects.

Ready to get started on home buying or selling a home? Just call and hear how I can help!