The process of a Home Loan - from Application to Closing
*Offer of credit is subject to approval*
Whether you're a first-time homebuyer or a seasoned pro, the process of getting a home loan doesn’t have to be overwhelming. Once you’re ready to take the next step in homeownership, your Regional Missouri Bank lending team will assist you from the start of the application through the closing process. We’ve laid out an overview of the process below to help you understand the basics of the home loan journey.
- Initial Meeting with a Lender
- It is important for you and your lender to communicate before starting the home loan process. This is the time when your lender will go over the application, different loan options, down payment, and credit requirements.
- Obtain an Application and Gather Documentation
- The application can be completed together with your lender, taken home to finish, or completed online. In addition to the completed application, you will need to provide your lender with the following items:
- Driver’s license or picture ID
- Last two years federal income tax return including W-2’s (with all schedules)
- Paystubs covering the last 30 days with year-to-date income totals
- Last two months statements for all deposit accounts (checking, savings, etc.)
- Last quarterly statement of investment accounts (IRA, 401K, etc.)
- The application can be completed together with your lender, taken home to finish, or completed online. In addition to the completed application, you will need to provide your lender with the following items:
- Turn in Application and Verify Information
- Once your application and documentation have been completed and turned into your lender, they will then start the application verification process. This step may take a few days. Your lender will pull a credit report and review all the documents you submitted to determine if you qualify for the loan according to our lending policies. If your lender has any additional questions, they will be in contact with you.
- Loan Approval and Estimate
- Once your lender has reviewed all items of the application, a credit decision will be made. If your loan request is approved, the next step is reviewing the Loan Estimate with your lender. The Loan Estimate is a document that shows an approximate calculation of your interest rate, payment, terms, and fees associated with the loan that you applied for.
- Make an Offer on a Home
- You may have already found your perfect home and made an offer. If you haven’t, now is when you can find the home that is right for you and make an offer to the seller to purchase it. If the seller accepts your offer, they will then have a contract prepared and you both with sign it. You now will have a contract to purchase your dream home!
- Appraisal
- Your lender will ask for a copy of the purchase contract, and then they will order an appraisal for you. They will also order title work and determine if the property is in a flood zone. During this step, all you need to do is sit back and wait. This may take several weeks to complete.
- Preparing for closing
- Once the title work and appraisal reports come back and are acceptable, it is time to prepare for closing. Your lender will schedule a closing date between you, the bank, the title company, and the sellers. The bank and the title company will work together to finalize everything and determine the amount you need to bring to closing to cover the down payment and closing costs.
- Closing
- This is the day you officially purchase your new home. You will meet at the title company or the bank to sign final documents for you and the seller. You are now a homeowner! Congratulations!
Ready to get started?
The RMB lending team loves helping customers walk through every step of the home loan process. To get started, stop by one of our nine branches, or call us today. We look forward to hearing from you soon and working with you on your home purchase!