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    Among the many prospective homebuyers in Texas that we interact with, the biggest confusion arises in finding the best home loan rates. The numerous technical terms and calculations tend to boggle even the savviest of buyers.

    If you’ve finally decided on a home loan, congratulations! All that’s left now is to fill out some forms and go through the application process. This is the part that many people forget can get equally confusing, if not more. Don’t worry. We’re here to guide you through the entire process.

    Disclaimer: The following information is specific to the areas of Dallas, Collin, Denton and other Texas counties. It may vary in your state.

    Pre-requisites

    The first thing you should start with is finding out how much you can qualify for. There are several premium calculators and your mortgage officer can also help you in assessing your borrowing limits. Information such as income statements, assets and current outstanding debts will be required for the process.

    Once you know the amount you can borrow, you should conduct an evaluation of your own situation – how much can you afford? A common novice mistake is to use the upper limit projected by the mortgage calculator, which just tells you how much you can lend theoretically. But a pragmatic examination should consider whether you would realistically be able to pay off the payments on time.

    Pro-tip: Consider getting pre-evaluated, which increases your chances of securing a home loan as well as a lower down payment.

    Applying for a Mortgage

    After you’ve decided on a property and signed the purchase contract, send the documents to your mortgage officer (or lender if it’s a direct loan) along with the following documents:

    • 1003 mortgage application
    • Income statement
    • Balance sheet or other asset valuation document
    • Pay stubs
    • Tax returns
    • Disclosure forms, which can include disclosure documents required by federal law such as good faith estimate

    Processing

    Once you’ve sent the required documents, it’s time to relax and wait for a call by the lender. They will use this time to evaluate your overall creditworthiness via the documents sent as well as external means such as FICO score. The process might take a few days.

    Closing

    Before closing the loan application, the lender may include several pre-closing conditions which you’ll need to adhere to. These may include requests for documents such as property deeds and even a letter of explanation in special circumstances. Once the conditions are cleared, you’ll need to sign a few documents such as the transfer deed, bill of sale, mortgage and HUD-1. Congratulations, you’ve just purchased a property in the state of Texas!

    While the above process is a little lengthy and requires paper form submissions, you can skip all that by applying for a home loan online with Todd Frank Home Loans at www.ToddFrank.com . Instead of paper forms, you just need to input the required information on an online form and they’ll do the rest.

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