The first step that a borrower takes when considering buying one of the lovely homes for sale in Irvine is obtaining a preapproval letter. Financial institutions such as banks, credit unions and mortgage companies provide a preapproval letter that entitles the borrower to be eligible for a loan with that particular lender for a specified amount.
So what happens once a preapproval letter is granted by the lender? It’s time to go house shopping since you know how much house you can afford. Since a preapproval letter is generally valid for up to 90 days, if you haven’t found an Irvine house for sale during this time period or if changes occur in your job or income, it is best to get your preapproval letter re-validated.
Once a home is found and an offer made to the seller, if the seller accepts, the mortgage application process can begin. Luckily, much of the information needed to begin the application process was already provided to the lender when the preapproval letter was granted and the first steps toward mortgage financing were accomplished. While the preapproval letter is a strong indicator you’ll have no issues obtaining a loan from the selected lender, it’s important to remember it’s not a guarantee.
An essential component of the mortgage application process is the home appraisal that is conducted by a certified property appraiser. This appraisal goes to the lender’s underwriter to determine if the property is valued for the amount of the loan and to ensure the property is worth at least as much as you want to borrow. If it does and you meet all other conditions required for the loan, such as income verification, then a closing date can be set for the final paperwork to be signed by both parties.
Find the help you need to successfully navigate the home-buying process by reaching out to Irvine Residential Living at (714) 454-6304. In addition to showing you houses and townhomes for sale in Irvine, we can guide you through each step from start to finish. Don’t hesitate. Call us today!