Housing Loan Processing

the market today. But in contrast, there are still people who avail housing loans and

wish to own their own home, have their dream houses, and start new families.

It is very important then for them to know how the housing loan process is done.

People who wants to avail housing loan must be knowledgeable on how the cycle

spins.

There are many processes involve in housing loan application. The first step is the identification of the type of housing loan that will be availed. Know what is the purpose

of the housing loan application. Know whether the housing loan is for construction of house, purchase of lot, purchase of house and lot, purchase of lot and construction

after. This is very important as following steps will be reliant on the type of housing

loan.

After knowing the type of loan, the borrower must prepare the documents needed for pre-processing of loan.

The documents needed varies depending on the type of housing loan. Although, most of lenders require basically same documents. After the documents have been completed, they must be submitted to the person or officer who handles the housing loan. At the same time, the borrower must pay appraisal fee or processing fee that is non-refundable. Processing fee includes the appraisal of the collateral.

Personal background and credit investigation is scheduled next after all pre-processing documents have been submitted and necessary fees have been paid. This investigation determines the capability, capacity and credit worthiness of the borrower pursuant to loan application. That is why it is very important for borrowers to always complete the details in the application forms and stay true to what they are writing. Housing loan verifiers rely only on those information and is accepted as valid, true and therefore subject to judgment. Staying true and not telling lies on information sheets or application forms signifies that a borrower is worthy of trust. After this has been done, another crucial step will take part, the appraisal of property.

After the person has been verified, next to be appraised of course is the property or collateral. Appraisal of property or collateral basically determines the existence, location, and market value of the property or collateral. This step determines the marketability of the property that if in cases of default, the property can easily be resold to other interested parties.

Next, a letter of guaranty will be given to the borrower signifying that the loan has been approved. Stated in the letter of guaranty are other documents, (post approval documents), that need to be passed before loan take-out. After all post documents have been submitted, the borrower will choose the mode of payment for settling the loan. Then, will wait for the loan proceeds. The borrower has options to receive the proceeds via credit to account, or issuance of check.