For most first-time homebuyers, the thought of financing a home is overwhelming. You’ve heard the rumors about piles of paperwork. But it doesn’t have to be a difficult process. If you prepare yourself, things can go smoothly from the start.
Often, prospective homebuyers seek pre-approval before looking for a home to be certain how much "house they can afford." With Fifth Third, the process is quick and very easy. Those who qualify receive a certificate that verifies their "ready-to-buy" status, which can give significant leverage in the bidding and negotiating processes.
After you find the home you want to buy, the more formal approval process takes the following steps:
- Buyer completes a loan application
- The lender begins to process the application
- The lending institution requests an appraisal of the home you wish to purchase, a credit report and verification of employment and assets, such as bank accounts. The lending institution will run a credit report, and you will be asked to provide the following documentation to show whether you are a good risk:
- The lender will provide a booklet containing specific loan information and a good faith estimate of closing and related costs
- An estimate of your loan costs, in the form of an Initial Truth in Lending Disclosure Statement is provided
- The lender evaluates the application, along with supporting documentation, and decides whether or not to make the loan
- A settlement agency coordinates the signing of closing documents
- Closing documents are recorded as official record
- Seller is paid and title to the home is yours. The lender places a mortgage as a security against this title.
If you would like additional information, please contact a Fifth Third Mortgage Loan Specialist toll free at 1-866-351-5353 or visit a Fifth Third Banking Center near you.