Many people nowadays get help from bank in order to purchase home for their family. Bank is one of the most financial institutions who will provide housing loan such as home purchase, home construction or home renovation.
Bank home loan takes 1 to 2 months of loan processing depending on the submitting of necessary documents of the borrower.
Here are the usual processes of bank home loan process:
1. Fill up application form
You will need to complete the filling out of loan application and submitting and subjecting to pre-approval process.
2. Get preapproved
The lender or bank will review your completed loan application. After reviewing your application, the borrower will received pre-approval letter which confirms the price of home that you can purchase.
3. Loan processing
You will require submitting necessary documents related to financial documents to process your loan. Also, the property will be appraised to know its fair market value.
4. Loan approval
The borrower will received the status of loan after reviewing application and financial information. If the application is deny, the bank will provide other options to obtain financing.
5. Pre-closing or loan settlement
In this phase, the home mortgage consultant will secure any required title, insurance and real estate document to protect against other parties
6. Closing date or settlement date
This is the final signing of mortgage documents and secures the payment to complete the purchase of house and lot