Is applying for a mortgage loan a complicated process?

Mortgage loans demystified

Mortgage loans aren’t nearly as complicated as one might think at first glance.

The mortgage loan process either begins with an applicant seeking a pre-approval with no home specified or possibky arriving at the application process with a specific home in mind.

The lender approves or denies the application based on several factors, including:

• The creditworthiness of the applicant
• The debt-to-income ratio of the applicant
• The market value of the home versus the sales price
• Several other factors

After approval is granted, the lender sets out to make sure the home is worth as much as the sellers claim it is worth by requiring an appraisal. The lender also does a title search to make sure the sellers are the only people with a legal right to claim the home. If everything comes back clear then a closing is scheduled.

Closing is nothing more than the conclusion of the application process, and it involves signing all the paperwork and actually acquiring the key to the home. Mortgage loans don’t have to be intimidating. Once you have an understanding of the overall process it can really be quite simple.