Buying a home is exciting, but it can be one of the most challenging if one doesn't understand the mortgage process. Customers often feel overwhelmed because of the amount of paperwork they must complete. Knowing what to expect, especially for first time buyers will help make solid decisions about home purchase.
As you gather your information from experts, it's more important to ensure that you are receiving reliable information that will enable you to make the right choices throughout the mortgage process.
Follow these helpful tips;
1. Say NO to "easy money"
Some offers may look too good to be true, if an offer is really appealing, get it in writing and seek second opinion.
2. Shop Around
Always talk to several lenders to find the best loan you qualify for. A mortgage loan product or lending practice may seem reasonable until compared with a similar mortgage loan product offered by other lenders.
3. Find Out About Payments and Penalties
Make sure you know all the penalties involved and how the repayments are going to be. Ensure that you understand all the fees that are part of the mortgage process. As mentioned above, it is important to know how much you will qualify for before identifying a house to buy or what size to build.
After understanding all this, now one can go on with the below process of getting a mortgage; It can slightly vary from one financer to the other, but this is what happens in general.
1. Submitting all the necessary requirement to the chosen financer (Offer letter, title deed, bank statements, confirmation of employment and physical address, Confirmation of Income, approved plans if construction, valuation report from the financers preferred valuers)
2. Filling the application form and submitting for assessment
3. Getting letter of undertaking from the financer and submitting to the seller
4. Identifying an attorney for bond registration and registering a bond
Once the bond is registered the bank will pay the seller. This property will be act as security upon failure by you to service the mortgage.