Buying a Home?
Step 6. Obtain a loan commitment!
Now that you’ve found the right home, it’s time to make a formal loan application. Using the information you provided at the time of pre-approval, your lender will confirm that you are eligible to purchase the specific property you’ve chosen.
You must make a final decision about the type of loan program to utilize. (Learn more about loans and financing.) You will sign many disclosures, including a Good Faith Estimate. This critical document outlines how much your closing costs and monthly payments will be, and calculates the amount of money you will need to bring to the closing table.
An appraisal of the property will be ordered by your lender. An appraisal is a report that determines the value of the home, to assure the lender they are not lending you more than the home is worth.
Upon review of your credit history, assets, liabilities, income and appraisal, your lender will issue a final loan commitment. This document is delivered to the real estate agents and the sellers to meet the financing contingency you included in your offer-to-purchase.
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