Congratulations on taking the first steps toward purchasing a home! These are a few pointers to assist you to navigate the mortgage loan process with Eagle Home Mortgage, a part of the Lennar family of companies. Eagle Home Mortgage has been operating since 1981, and in 2018 alone provided home financing to more than 35,000 households.
Now that you’re becoming a homeowner, there’s a lot to celebrate. You are ready to purchase your first home, you’ve done your homework and are ready to jump in. We want to provide you with some direction as the mortgage process can sometimes be overwhelming. You have a steady job, saved for a down payment and chosen a neighborhood where you want to put down roots. Eagle’s goal is to ensure that you have an effortless, seamless experience.
The Approval Process
Pre-qualification is the first step of the mortgage loan process. A quick look at your financial situation is taken. This step is completed casually, either online or over the phone. You’ll provide basic information about your income, assets, and debts, and the lender performs a credit evaluation, giving you a ballpark estimate of how much money you’ll be able to borrow. Keep in mind, however, that this step is based solely on the information you provide.
A Pre-approval is more comprehensive than a pre-qualification. For starters, you will need to complete a mortgage application. An underwriter will then conduct a thorough financial background check by reviewing your credit report, pay stubs, bank statements, tax information, assets, and obligations. After a determination of your creditworthiness is made, you will be notified of the results.
What to Determine Prior to Applying for a Loan
There are a few different things to keep in mind when purchasing a home. The biggest three to consider are how much you can afford based on your monthly gross income, what you feel comfortable spending on a monthly mortgage payment, and whether or not you have the cash required for a down payment. As a rule of thumb, it’s a good idea to spend under 43% of your gross monthly income on your total housing payment.
Common Mistakes of Pre-Homeowners
When moving through the mortgage loan experience, there are a number of different elements that you need to stay on top of. The biggest, and possibly most important thing to keep in mind, is to stay honest throughout the whole process. This will allow the lender to better assist you.
Make sure to properly disclose where the funds for the down payment and closing costs are coming from. The lender is working with you to make the process as seamless as possible! In addition to this, make sure to be very detailed on income and employment history.
Some things, like purchasing a new item on credit or changing employment during this time, can cause the loss of a loan approval, so make sure to stick to the same job and put off getting that new car that’s calling your name!
As a final thought, make sure to keep your money where it is when you start the process. All funds for the transaction need to be verified, and moving money around can cause the request of more documentation and delays on being approved.
At this point, you can begin to shop for a home! You’ll probably have a sales price in mind to consider when searching for the right community to become a part of. To find the community that fits your family’s needs and lifestyle, be sure to Like Lennar on Facebook!
Financing available through seller’s affiliate Eagle Home Mortgage, but use of Eagle is not required to purchase a home (See Affiliated Business Arrangement Disclosure). Eagle Home Mortgage, LLC – NMLS #1058, Mortgage Lender/Servicer license #MLD549