Applying for a home loan
To obtain a home loan, you need to submit an application first. This application will tell the lender all information needed to obtain verification that you will be able to pay back the loan. You will also sign an authorization form to give the lender the right to obtain your credit report. Most loan approvals are based on your credit rating, and those that are not will still look at the report to see your credit history. As part of the application, you’ll be asked questions on your present employment and employment history, rental information and other loans that you may have.

The loan
The house you are buying is the collateral for the loan so the lender has the right to foreclose on the property and take it back from you if you fail to pay back. It will then resell it to get its money back. Once you are approved for a home loan, the property must be approved. This means it will be appraised to make sure it is worth what you are paying for it. The appraiser may call for specific inspections to be done to verify that systems like the roof are working properly. Once the lender approves the house you may be asked to provide title insurance on the property. This is usually done through a title insurance company, an attorney or an abstract company.

At the closing of the loan, you’re required to bring a certified check for the amount of the closing costs and down payment. You then sign the loan documents, two of them being a mortgage and a note. The mortgage states the terms of the loan, and the note is your personal promise to pay back the loan. The documents are then recorded in the records of the area where the property exists.