Finalizing Your Frisco TX Loan Mortgage Process
At the beginning of this Frisco TX First Time Home Buyer’s series, we discussed the need to know how much you can qualify for. Now that we are almost concluding the Frisco TX first time home buyer series, we are back where we started. Coincidentally, this is also where we left off and this step almost completes your first time home buying process in Frisco TX.
You have an amended executed contract, you are ready to focus on your getting your home loan approved. By this time, you should have decided on which lender to use. If you have not decided, there is a possibility on a delayed closing.
Read also, How to compare Lenders & Good Faith Estimates.
Read also, In the end, it’s a matter of smooth and timely closing.
Complete your paper documentation to your Frisco TX lender
Most first time Frisco TX home buyers understand the obvious reason to be pre-qualified in the home loan process. The “pre-qualification” process means the lender has probably reviewed the credit report but not receive the loan application and/or reviewed the supporting financial documentations.
In order to complete your Buyer Financing portion of the loan approval, prepare these important supporting financial documentation:
- Past 2 months of pay stubs
- Previous 2 years of W2s to the IRS
- Past 2 years of Tax Returns
- Checking and savings account statements including Certificate of Deposits (CDs) – 2 months
- Other income documentation (child support and/or alimony)
- Statements showing assets (retirement accounts, mutual funds, etc.)
Read also, Two Halves Make a Full Loan Approval.
When to lock in your home mortgage interest rate
Interest rates could fluctuate throughout the day. Most of my first time Frisco TX home buyers may ask my opinion about whether the rate will go down further. My answer has always been this:
When you make a budget estimation of how much your monthly mortgage payment will be (Part 3 – What makes up a house payment in Frisco TX), what was your interest rate? What was your monthly payment?
Compare it to what you have been given at decision time. Are you happy with what you have? What are the chances go the rates going lower or do you have a higher chance of it heading higher?
No one knows has the crystal ball. If you are happy with what you have today, make the decision today. It’s a matter of your comfort zone.
Home Hazard insurance
Contact your home insurance provider for appropriate quotes and coverage. Give your lender contact information of your insurance provider. Your final loan approval also depends on ensuring you have adequate home insurance coverage.
You may start with your current auto insurance provider. Many insurance providers offer multi-policy discounts if you have your home and auto coverage at the same company.
The Final Loan Approval
Essentially, as a first time home buyer in Frisco TX, your job ends here. You have done ALL you can to get your loan approved. Now, you depend on your lender to take you into loan approval and closing.
- The lender orders Title Commitment and Appraisal.
- Other loan application including supporting documentation, employer verification, lock rate sheet, home insurance coverage, appraisal and executed contract,
The lender takes this file into “Underwriting” for a final loan approval. During the Underwriting process, the lender may require more documentation upon review. Please be timely in getting back to the lender/ underwriter for the documentation needed.
Clear to Close
The magic words are, “CLEAR to CLOSE”. That means your mortgage has its FINAL STAMP of MORTGAGE LOAN APPROVAL.
Last word of advice, be patient until you hear a “Clear to close” from the Lender. Be quick to respond to the underwriter’s needs for loan approval. Good luck.
Map of Frisco Texas
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3:16 team REALTY is a locally-owned real estate company serving Frisco
TX and the surrounding cities. Find out
(214) 783-2210
info (at)
316RealEstate.com
Loreena Yeo is the broker of record of 