What is involved in the home loan application process?

Typically the process starts when a customer makes contact with a home loan company or mortgage company when they need some assistance involving mortgage financing.

If you are thinking of buying a house, you might wonder what the home loan application process is like. You need to choose a lender you can trust and know the kinds of financial records you will need to present

when applying for a loan. It also would be good to consider your financial situation to determine whether you can afford to buy a house, and it would be good to talk with a lender you can trust to help determine that.

"Typically the process starts when a customer makes contact with us," explains Doug Perry, who has worked in the Consumer Markets Division for Countrywide Home Loans for 16 years. "A customer usually has some sort of situation needing some assistance involving mortgage financing. It could be something as black and white as the customer is going to purchase a home. Before someone is going to purchase a home, that person should contact a lender to find out how much he is qualified for. Then there are the initial conversations with a lender, such as Countrywide, where you are exposed to individuals who are very skilled mortgage finance loan experts. Those initial contacts are free of charge."

Be prepared to provide the following information when you apply for a loan to buy a house: your salary and information about other income such as dividends and rent; your name address and phone number; if you are self-employed, you will need information about your income from your last year's tax return; and details of your previous employment, if you have not been at your current job for three years.

In addition, you will have to provide: your driver's license number; information about your previous residence if you have not lived at your current address for three years; information about your assets and liabilities including home and property values; the value of your savings and life insurance; investments; motor vehicles, and other personal property; if you are renting, contact information for your landlord; plus information about financial commitments you have, such as other loans, credit cards, and store accounts.

"You get a lot of advice upfront, and we really encourage customers to do that," Perry further explains the process. "So, for instance, before you buy a home, obviously you want to get pre-qualified, perhaps even pre-approved. That is so you will know exactly how much you can afford, you understand what the payments are, and you understand some of the other expenses associated with owning a home. It could be as simple as knowing how much the home owner's insurance costs, or how much the property taxes are going to cost, but it really provides some great guidance. It provides an opportunity
to understand all the different options available to them - everything from zero down payment loans, to mortgage insurance and advice on getting a second mortgage to avoid mortgage insurance. We offer a lot of things that are very, very useful."

If you are considering buying a house, it would be good to consider certain things relating to your finances and perhaps to talk them over with an expert, like the experts at Countrywide Home Loans.

It is also a good idea for those considering buying a house to plan a monthly budget of expenses and income, and it would be good to discuss your finances with an expert you trust.

When choosing a potential lender you should choose a company, like Countrywide, that provides a wide variety of ways to apply for a loan and that has knowledgeable employees. At Countrywide, you can apply in person, online, or over the phone. The call centers are open a wide variety of hours, so you can call before work, after work, and even on Saturdays and Sundays.

There are a lot of things involved in applying for a loan to buy a house. None of them are that complicated, however, if you talk with an expert you trust.


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