THE RIGHT LOAN, THE RIGHT RATE, THE RIGHT CHOICE
A lender is a financial institution or individual that provides loans to borrowers, typically for purposes such as purchasing a home, financing a business, or covering personal expenses. In the context of real estate, a mortgage lender provides the loan needed for a homebuyer to purchase a property. The lender offers various types of loans, such as fixed-rate mortgages, adjustable-rate mortgages, or government-backed loans, and the borrower agrees to repay the loan amount, typically with interest, over a set period.
In a home-buying process, lenders assess a borrower’s creditworthiness, financial stability, and ability to repay the loan before offering mortgage terms. Examples of lenders include banks, credit unions, online lenders, and mortgage brokers.
BUYERS
Pre-Approval
Meet with a lender to get pre-approved and determine how much you can borrow.
Loan Application
Complete your loan application with necessary documents.
Loan Estimate
Review the Loan Estimate, which outlines loan terms and costs.
Processing and Underwriting
The lender verifies your information and the home’s value.
Appraisal
An appraisal ensures the home’s value meets the loan amount.
Approval and Commitment
If approved, you’ll receive a loan commitment letter.
Closing Disclosure
Review the final loan details and closing costs before closing.
Closing
Sign documents, pay remaining costs, and finalize the loan.
SELLERS
Pay Off Mortgage
Settle any remaining mortgage balance before selling.
Determine Home Value
Work with your agent to assess your home’s market value.
Request Payoff Statement
Get a mortgage payoff statement from your lender.
Understand Closing Costs
Be aware of costs like agent commissions and taxes.
Pay Off Loan at Closing
Your mortgage is paid from the sale proceeds.
Clear Liens
Resolve any liens or outstanding obligations before closing.
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