Applying for a mortgage especially for first-time buyers can seem more than a little daunting. The whole process is littered with confusing jargon-filled documents and legal and financial technicalities not to mention the fact that it can sometimes be quite lengthy. But your anxiety and buyer headaches can be managed if you know what to expect and how the process works. To that end heres an overview of the process of applying for a mortgage in Atlanta . Applying for a Mortgage in Atlanta The Steps From Start to Finish Any overwhelming and confusing process becomes more understandable and more manageable when you break it down into steps. Though the minutiae of the steps can vary as conditions vary here are the typical major steps in applying for a mortgage in Atlanta (as well as what comes after because thats the completion of the process): 1. PRE-APPROVAL Your first step in applying for a mortgage in Atlanta will be to get pre-approved. Pre-approval is when a lender reviews your financial situation (particularly your income assets and debts) to determine if youre a good candidate fora loan. Theyll also tell you how much they are willing to lend to you and provide you with a pre-approval letter to that effect. And getting that pre-approval letter is a critical first step. First of all it will save you time and effort because you can narrow your search to houses within your already determined price range. In addition sellers will see you as a serious buyer and the pre-approval letter will give you more negotiating leverage. 2. PURCHASE AGREEMENT Now with your pre-approval letter in hand youre ready to go househunting. Youll have both more confidence and more bargaining power. Once youve found a possibility and have made an accepted offer the next step (actually the next pre-step) in applying for a mortgage in Atlanta is to draw up a purchase agreement. Your lender isnt involved yet just you and the seller. (Consult your local agent about how to make an offer. Call 678-337-1165.) 3. LOAN APPLICATION This next step in applying for a mortgage in Atlanta is where your lender does get involved the actual mortgage loan application. This is a straightforwardstep in the processbecause most lenders use the same standardized form. They use the Uniform Residential Loan Application (URLA) also known as Fannie Mae form 1003. During the completion of this form as the initial step in the actual application process you will have to provide information about the property the kind of loan you want and your financial information. Again your local real estate agent can help you navigate this part of the process. She can help in preparing and gathering all the pertinent information and documents. (To find out more just call 678-337-1165). 4. MORTGAGE LOAN PROCESSING Once the mortgage loan application is completed the process moves on to the next step processing of your loan application. In the first stage ofthis step the loan processor will collect a variety of documents relating to you the borrower as well as the property being purchased including bank statements tax records employment letters the purchase agreement and more. Then they will review the file to ensure it contains all of the documents needed for the underwriting process. Your lender/loan processor will also likely order additional credit reports and will verify your income and assets and then have an appraisal done. Be aware though that the exact aspects of this step can vary from company to company and according to the kind of mortgage loan. Still the basics hold in nearly every case. 5. UNDERWRITING Next comes underwriting. The underwriter the key decision-maker in the approval process will examine documentation provided by the underwriter to ensure that it meets and complies with all pertinent lending guidelines and requirements. So the underwriter has the power to reject the loan if all the key criteria arent met. Basically the underwriter is assessing the amount of risk involved in the loan. And they do this by examining three key elements: Capacity Are you able to financially handle the loan paymentand your otherfinancial obligations and debt? Credit Is your credit and debt-repayment history good enough to warrant granting the loan? Collateral Is the propertys market value high enough that it can serve as collateral for the loan? If the underwriter determines that all three are adequately met then youre in. If however there are some issues you may be granted conditional approval which means youll have to resolve the issues before getting full approval and underwriting. 6. APPROVAL AND CLOSING Although this final step comes after applying it remains part of the process of applying for a mortgage in Atlanta because it is the culmination of and so an integral part of the process. Hereshow ittypically works: Once the loan is approved the file is transferred to the closing and funding department. The funding department notifies the broker and closing attorney of the approval and verifies broker and closing fees. The closing attorney then schedules a time for the borrower to sign the loan documentation. This last part is your final goal closing. At closing all the necessary documents are signed and money changes hands. Then the mortgage note and deed of trust are recorded at the appropriate county office and all final fees are paid. And then finally you are a happy homeowner. But Dont Try It Alone . . . Although weve made applying for a mortgage in Atlanta a little more understandable it remains nevertheless a legally and financially complex process. It really isnt something buyers should try to navigate on their own. Learn more about applying for a mortgage in Atlanta ! 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