Things They Don’t Teach You In School – But Should

“Why didn’t they teach us this in school?” We’ve all probably said, thought or heard this question numerous times in our lives. Whether it’s referring to how to file taxes, the best way to save and invest or how to negotiate contracts and salaries, I’m sure we could come up with a pretty extensive list of life essentials they never taught us during our primary education! It’s infuriating at times. However, cursing our old grade school teachers won’t help us learn the crucial skills that practically every adult will inevitably need at some point in their life.

This is where we come in. Follow the AmeriSave blog for a weekly post update that covers one of the many important skills everyone should have to survive adulthood. Because whether you’re fresh out of college or a seasoned veteran of life, adulting can be hard.

This week: How to apply for a mortgage

The mortgage process can seem  daunting to a newcomer (or anyone for that matter), but trust us, it doesn’t have to be. At AmeriSave, we strive to make the mortgage process simple and straightforward so that you will feel confident and knowledgeable about your loan. Let’s break it down into steps:

Step 1: Apply for a pre-approval – This is an important step in your mortgage process. Ask just about any homeowner, and they will confirm how stressful it is looking for a home but not really knowing exactly how much home you can afford. With a pre-approval, after submitting all of the paperwork (W-2’s, pay stubs, federal tax return, bank and investment statements) you will be told the loan amount the lender is willing to give you.

Step 2: The application – At this point you have found a home and decided on a loan program. Now you’re ready to apply for your loan. You may need to provide more documentation and any additional information your lender may need. After you’ve applied and been approved for your loan amount, you will receive a commitment letter as well as your loan estimate.

Step 3: The appraisal – The property that you intend to purchase will need to be appraised. Your lender will order the appraisal in order to determine the loan amount based on the appraised value.

Step 4: Underwriting – After your lender collects all of your information, they put together a file that is then sent to the underwriter. The underwriter’s job is to make sure all of the requirements for the loan are met. This can typically result in more information being needed on your part before the loan can be finalized.

Step 5: Pre-Closing – You’re now in the final stages of the loan process. In this stage the loan is approved, your title insurance can be ordered and you can schedule your closing date.

Step 6: Closing – Congrats, you did it! Your loan is now closed, and you’re ready to move in!

Now that you have a bit more knowledge on the loan process you’re ready to apply for a pre-approval and begin your own loan process.

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