How Purchase Loans Are Made in Greater Lafayette and West Lafayette Indiana

A Step-By-Step Walkthrough

1. Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer".
   
2. Loan Search - Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.
   
3. The Hunt - Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
   
4. Loan Application - Supply your mortgage professional with all required information, and try to be as accurate as possible. It's essential to include all outstanding debts as well as assets and income.
   
5. Documentation - Submit the proper paperwork supporting your application to your loan professional. Commonly requested items include pay stubs, two years' tax returns, and account statements verifying the source of the down payment, funds to close, and reserves.
   
6. Appraisal - Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.
   
7. Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
   
8. Termite Inspection - Most purchase loans require an inspection for termite and water damage. Some problems may need to be repaired before finalizing the sale.
   
9. Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
   
10. Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.
    
11. Mortgage Insurance - Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.
    
12. Approval, Denial or Counter Offer - In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.
    
13. Insurance - Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.
    
14. Signing - During this step, final loan and escrow documents are signed.
    
15. Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.
    
16. Closing - Documents transferring title will now be officially recorded by the County Recorder.
    
17. Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.
    
18. Congratulations, you are now a homeowner!

If you'd like to learn more, please give me a call.
I'd be happy to speak with you!

DAVID MENNEN
Mortgage Consultant, Owner

Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com

The #1 FHA Lender in Tippecanoe County - Since 2003!

P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.

P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!

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