6 Steps Of Mortgage Loan Process

6 Steps Of Mortgage Loan Process

Mortgages in Kenya

The process of acquiring a mortgage is not easy, especially for first-time home buyers. You may not be sure or aware of what will pop up along the way. This is more so if you ever had financial problems in the past. A mortgage is an excellent way to own a home, but you need to understand what the process of acquiring one is like.

In this article, we shall discuss the main steps of getting a mortgage.

Mortgage Pre-approval

The first step in the process of acquiring a mortgage is pre-approval. Nevertheless, it is not something you can bank on, although it shows how much you can afford. The lender will check your income-related details and the credit report during the pre-approval stage. After that, you will be given an estimate of what you qualify to get.

House Hunting

You now know how much you will work with if you have qualified at the pre-approval stage. Therefore, you can search for a house within the amount approved. Be careful to pick a real estate agent willing to work within your limits. Once you find a house that you like and at the mentioned price, you will give your offer to the homeowner via an agent. If they accept your offer, you proceed to sign a house purchase agreement. You may be required to deposit some amount to prove your commitment to the house buying project.

Application Preparation

You will be required to complete your mortgage application process once you have made an offer. Most lenders use the same copy of the application, so it won’t be hard for you to get one. Ensure you fill out the form appropriately without skipping any detail. You will also be required to provide copies of your pay slips, tax returns, and any information regarding a debt that you may be having.

Application Process

In this step, your mortgage application is processed. This involves reviewing it to ensure you have correctly filled it and all the supporting documents are okay. Your income, assets, and employment details will also be reviewed. This is a quick process if you provide what is required.

Mortgage Underwriting

The underwriting phase begins once the application process has been closed. In this step, your information will be reviewed deeply by the underwriter and ensure there are no red flags. Their primary focus will be on your capacity, credit, and collateral. Expect to be asked some questions during the underwriting process and answer them carefully.

Mortgage Closing And Approval

This is the last step, and it comes after the underwriter is satisfied with the information you provided. This means your request has been approved. Nevertheless, before the mortgage closing, you will be given a closing disclosure: a form that provides you with the final loan details and terms, the amount you are supposed to pay monthly, plus your closing and fees costs.

We hope the above information will help you prepare to acquire a mortgage and own your dream home. The Kenya real estate is one of the fastest growing in Africa. Denver Group Limited offers you the opportunity to be part of the growth through selling affordable value added plots which have ready Title Deeds.