When the moment in time comes to buy your first residence you will probably have conflicting feelings about the home buying process. Shopping for a perfect place to call home is an important and exciting time in your life. Before you can get the keys to your first home you have to proceed through several steps, some of which can be confusing or downright nerve-racking. One of the primary steps is securing money to acquire your home. The loan process can be complicated therefore learning as much as possible beforehand will reduce the possibilities of making a costly mistake. Here we consider the mortgage loan process for first time home buyers.

Determine how much home you can manage to pay for- This is not an official step in the loan process, but an important step nevertheless. Avoid putting yourself in a position where you are house poor by buying a home that you can meet the expense of. Lenders consider many factors when determining how much credit they are willing to extend, however no one knows your economic condition better than you- determine a number you are comfortable with and stick to it, even if the lender approves your loan for a higher amount.

Compare loan terms- Finding the right mortgage lender and home loan is simply as important as finding the ideal home. Buying a home is a huge investment and one that ought to be taken very seriously. Take the time to match lenders and loan terms to find the perfect loan. Begin with a checklist of potential lenders including their name, address and contact information. For every lender you will want this information; type of mortgage, minimum down payment, rates of interest and points, prepayment penalties, closing costs and length of time to process loan.

Loan application- One can fill out a loan application in person, over the phone and sometimes over the Internet. The loan officer will ask you about your employment, income, savings and debt. The loan officer will request proof in the form of pay stubs, W-2's and tax returns. Your credit will be checked to see likelyhood to repay. When filing out the mortgage application make sure all requested information is supplied to make sure the mortgage application is processed without holdup. Wrong or unfinished applications could result in being turned down for a mortgage loan.

Processing the loan- Once you have concluded the mortgage application it is going to then pass from the mortgage advisor to the mortgage processor. Their job is to ensure all the paperwork is in order and all requested information and documentation is complete. The mortgage processor mainly evaluates all the information that you went over with the loan officer, verifying information and comparing numbers to determine whether you qualify for the home loan.

Underwriting- Next your loan application will be reviewed by the underwriter. The underwriter checks the work of the processor. They will review all the information on the loan application once again to make sure everything that is necessary is there. A second look at the information by the underwriter will corroborate whether your home loan is going to be approved. If you have met all of the conditions of the mortgage loan and furnished all the essential documents your loan will be approved.

Closing and settlement- When the mortgage loan has been approved it is going to then go to settlement This is when the lender contacts the title company to start the paperwork needed for closing. At this phase money are made available for the acquisition of the home and closing is scheduled. Mortgage closing is the ultimate step in the mortgage loan process. Everyone is present the buyer, seller, real estate brokers and notary. During settlement both the customer and seller go over a settlement sheet to ensure the numbers are correct and as settled. If all steps of the mortgage loan process have been followed, there should be no last minute issues or problems. This is now the final step in the mortgage loan process.