Understanding the Loan Process

If you are a first-time homebuyer or haven’t bought a home in a while, this guide will offer valuable information about buying a home.


First: Gather the information you will need to qualify for a home mortgage

Before you can buy a home, you will need to secure financing. Be ready to provide Wallingford Mortgage with the following information:

Income and Employment

  • What is your current income?
  • Are you employed?
  • Do you have a history of steady employment?

Down Payment

Wallingford Mortgage will ask how much money you have available for a down payment. A down payment of 20 percent or more of the home purchase price demonstrates your commitment to long-term homeownership and provides you with immediate equity in a new home.

Credit History

Wallingford Mortgage will review your credit history — how well you’ve paid your bills in the past — by reviewing your credit report. Wallingford Mortgage will consider how much you owe on credit cards, car payments, student loans and other debt. Wallingford Mortgage will also review your ability to pay property taxes and other expenses of homeownership.

Escrow Accounts

Wallingford Mortgage may suggest that you set up an escrow account. With an escrow account, you pay a fixed amount each month in addition to your mortgage payment to an account maintained by the lender. The lender then draws on that account to pay property taxes and homeowners insurance as those bills become due. Escrow accounts ensure that money will be available for these payments. Learn more about Escrows


Second: Use Wallingford Mortgage to get pre-approved for a mortgage loan

Remember that you are investing not just in a home but also in the mortgage loan that will finance your home.


Wallingford Mortgage will review your financial information and explain the preapproval process. While pre-approval is not a mortgage commitment or guarantee, it will provide guidance on what you can afford to spend on your new home. Having a pre-approval letter to show to a seller demonstrates that you are a serious buyer. When you are ready to buy, it will shorten the time it takes your lender to complete the mortgage application process.


Wallingford Mortgage will explain all loan fees — the up-front costs of originating, processing and closing the loan.


Third: Select your new home using Wallingford Realty

With your mortgage pre-approval in place, you are ready to begin your search. Wallingford Realty will show you homes for sale in your area.  Jeff Steingraber can help you find a home that meets your needs and your budget. He is a licensed agent that has access to the Multiple Listings Service (MLS) which offers the most comprehensive list of homes for sale.


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November 2018
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