Obtaining a home loan can be a fun and exciting time, but learning the Tulsa home loans process before you start searching for your dream home can save you time and possibly even some money.
Whether youre searching in the Oklahoma area or other parts of the world, the home loan process is similar. While different lenders may have different guidelines, most equate to pre-qualifying for a home loan, finding your home, securing a lender, and closing on your home.
Here is a brief overview of the loan process so you will know what to expect when securing Tulsa home loans or homes in your particular area.
Understanding a Home Mortgage Loan
The overall concept of a mortgage loan is not complicated. Basically the property that you want to purchase will act as collateral to the lender loaning you the money. The amount of the loan is the principal sum and there is an annual interest rate on the amount of the loan. If the homeowner is unable to meet their mortgage loan obligations, the lender has the right to take back or foreclose on the property. Home mortgage loans are typically paid in monthly installments.
In the Beginning
Before you start seeking real estate agents and/or lenders, is it suggested that you check your credit score. This should be done regularly, but it is especially important before you make a major purchase such as a home loan. Your credit history will show the lender how you pay your bills, how much debt to credit ratio you have, as well as any delinquencies or charged off accounts. Your credit score will play a major role in your ability to secure a home mortgage, what your interest rate will be, and how much home you can afford.
Getting Your Paperwork In Order
If you are planning on purchasing a home, documentation will be required to prove that you are financially able to make your monthly payments. Having your paperwork ready beforehand will help speed up the loan approval process.
If you are employed, you will need to provide your W-2 form and pay stubs. For self-employed individuals, you will need to show two years worth of tax statements. If you are a private business owner, you will need to show your revenue and loss statements.
Retired persons will need to show two months of bank statements or a 1099 tax form in addition to a letter from the Social Security Administration (if you are receiving social security) and documentation of any pensions you are receiving.
There is other basic documentation that you will need to show such as bank statements, credit card accounts, loans or other types of credit extended to you. If you are a current homeowner, you will need to show documentation of your current loan.
While there is more documentation that you may be required to show, this will give you a brief overview of what is needed to apply for a home mortgage loan in Tulsa. Learning the Tulsa home loans process will help things go smoothly and get you in your house sooner.
Whether youre searching in the Oklahoma area or other parts of the world, the home loan process is similar. While different lenders may have different guidelines, most equate to pre-qualifying for a home loan, finding your home, securing a lender, and closing on your home.
Here is a brief overview of the loan process so you will know what to expect when securing Tulsa home loans or homes in your particular area.
Understanding a Home Mortgage Loan
The overall concept of a mortgage loan is not complicated. Basically the property that you want to purchase will act as collateral to the lender loaning you the money. The amount of the loan is the principal sum and there is an annual interest rate on the amount of the loan. If the homeowner is unable to meet their mortgage loan obligations, the lender has the right to take back or foreclose on the property. Home mortgage loans are typically paid in monthly installments.
In the Beginning
Before you start seeking real estate agents and/or lenders, is it suggested that you check your credit score. This should be done regularly, but it is especially important before you make a major purchase such as a home loan. Your credit history will show the lender how you pay your bills, how much debt to credit ratio you have, as well as any delinquencies or charged off accounts. Your credit score will play a major role in your ability to secure a home mortgage, what your interest rate will be, and how much home you can afford.
Getting Your Paperwork In Order
If you are planning on purchasing a home, documentation will be required to prove that you are financially able to make your monthly payments. Having your paperwork ready beforehand will help speed up the loan approval process.
If you are employed, you will need to provide your W-2 form and pay stubs. For self-employed individuals, you will need to show two years worth of tax statements. If you are a private business owner, you will need to show your revenue and loss statements.
Retired persons will need to show two months of bank statements or a 1099 tax form in addition to a letter from the Social Security Administration (if you are receiving social security) and documentation of any pensions you are receiving.
There is other basic documentation that you will need to show such as bank statements, credit card accounts, loans or other types of credit extended to you. If you are a current homeowner, you will need to show documentation of your current loan.
While there is more documentation that you may be required to show, this will give you a brief overview of what is needed to apply for a home mortgage loan in Tulsa. Learning the Tulsa home loans process will help things go smoothly and get you in your house sooner.
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