Understanding the Home Loan Process
Stonebridge Home Loans provides the tools, guidance, and support to make your mortgage process simple, smooth, and stress-free.
Understanding the loan process can be complicated, which is why you want to have all the tools you need to make it as smooth as possible. At Stonebridge Home Loans, we strive to provide our clients with all the necessary information to expedite the process and ensure it goes smoothly.
Step-by-Step Loan Process
When you are applying for a loan, this is the typical process you can expect. When you choose to work with Stonebridge Home Loans, we navigate the process for you so that everything is done correctly.
Determine How Much You Can Borrow
As you begin the loan process, you need first to know how much money you can borrow. When you’re buying a home, you should determine this even before you start looking. This will let you know which houses are within your price range and which are not. You may even first want to see if you should rent vs purchase. Use our rent vs. own calculator to see what this looks like for you.
Many homebuyers choose to get pre-approved for a loan. Lenders will look at your income, credit, assets, and liabilities to determine how much money they are willing to loan you.
Use our mortgage calculator to help understand what your monthly payments will be based on your loan amount.
Decide Which Loan is Best for You
Home loans are not a one-size-fits-all approach. There are different types of loans to suit your budget and your needs.
The two most common types of mortgages are the fixed-rate and adjustable-rate mortgages.
- Fixed Rate Mortgage: These usually have terms lasting 15 or 30 years. The interest rate and monthly payments stay the same. This type of loan is best for people who plan to live in their home for several years and like the idea of having a fixed payment.
- Adjustable Rate Mortgage: Unlike a fixed-rate mortgage, this type of loan has an interest rate that fluctuates. This means that monthly payments will increase or decrease. People typically opt for this loan if they plan to stay in their home for less than 5 years and don’t mind having changing monthly payments.
Apply for the Loan
Once you determine what amount you are eligible for and what type of loan is best, it’s time to start the application process. The team at Stonebridge Home Loans can ensure your application is completed properly and that you have all the documents you need.
Approval Process
After submitting the application, you must wait for approval. Your loan process will review all of the information you submitted. This includes verifying your income and employment. They will also run a credit check to see your credit score. This will give them insight into how you’ve paid debts in the past and an idea of whether you are suitable to make your new loan payments.
Your assets will be evaluated to determine whether you have sufficient funds for the down payment and closing costs.
The property you wish to buy will be appraised to determine its market value. If other documentation is needed, you will be notified.
Close Your Loan
Once your loan is approved, you can sign the documents. Be sure all personal and loan information is correct. If needed, bring a cashier’s check for the down payment and closing costs.
You can count on Stonebridge Home Loans to be with you every step of the way. We help homebuyers in Pennsylvania, New Jersey, and Florida obtain the loans they need to make homeownership a reality.
Do You Have Questions About the Loan Process? Contact Us
Stonebridge Home Loans is here for you when you have questions about the loan process. We have more than 20 years of industry experience to share with you. We are here to guide you in the process and help you get the loan you need to purchase your new home. Contact us today to learn more. 215-357-7934
Typical Mortgage FAQs
How much should I expect to pay in closing costs?
Usually, the closing costs are between 2% and 5% of the loan amount. Your loan officer can give you the exact amount for your specific loan.
How is my mortgage payment calculated?
Typically, a monthly mortgage payment consists of the principal, which is the amount you initially borrowed for your loan. The interest is also added. Your annual property taxes and homeowner’s insurance are also calculated into this amount. You can use our handy mortgage and amortization calculator to see the some of this.
Is a 15 or 30-year mortgage better?
There is no right or wrong answer here. A 15-year loan term can offer a lower interest rate than a 30-year loan term in some cases. Payments for a 30-year term are usually less.
What is an escrow account?
This is the account where mortgage lenders hold money to pay your property taxes and homeowner’s insurance. Your lender will calculate how much your property taxes and homeowner’s insurance premiums are for the entire year. This amount is divided by 12. You pay that amount each month along with your standard mortgage payment.
