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Application Process and Pre-Approval
Your application will be processed and if everything goes nice and smooth
then the bank will preapprove your application. During the application process expect even more
questions or needed information. But don’t let that bother you and make sure you provide them with
the info.
Being preapproved for a home mortgage loan gives you power and priority in
the eye of the house seller, whether that is the home owner or the real estate agent. That way you
can start negotiating and requiring more answers to your questions about the house that you like to
buy. Next is…
House Inspection and Appraisal
If you set your mind on a house that you really like then you want to find
out the market value of that house and inspect the house for any major problem that might arise in
the near future. The last thing you want to do is to pay too much for an overpriced house and
discover you need to make some major repairs in the house after you have closed the deal. Most
likely, it will be you and not the bank who will pay for the inspector and the appraiser, but it is
worth the investment for your future peace of mind.
Title Search and Insurance
The term “Title” means the ownership of a particular part of land and when
someone owns a house then that person also owns the title to the house. The bank owns the title of
the house until you pay off your home mortgage. Therefore, the bank will ask for a search of title
just to make sure the person who is selling the house to you has the authority to do so and is not
a lawbreaker.
The Title Company verifies the seller and after everything is going all
right then you “the buyer” will be asked to secure title insurance. The purpose of title insurance
is to protect you against costs of defending your house title in court if in the future that will
ever happen. These fees are usually included in final arrangement you reach with your
bank.
Approval and Closing
As soon as you complete the above steps and everything goes well, then the
bank will make the big decision to see if you qualify for the home mortgage loan, which you most
likely will. You will then get official documents guaranteeing that you will get the mortgage loan
and specifying the sum of it.
During the closing process you are required to buy home insurance and to provide a copy of the home
insurance purchase to the bank. You buy the home insurance at the beginning of your home ownership
usually for a full year. All of the numerous legal documents will be signed and money will be
transferred between the involved sides and the home is deservedly yours.
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