# STEP 1 : Pre-qualification & application

D E T E R M I N E Y O U R B U D G E T: The mortgage payments (house, car, student etc.) in total should not be more than 35% of your pre-tax income Anything more than that and you are likely to stress your finances.

M O R T A G E P R E - A P PR O V A L: Once you know your budget, you will submit a mortgage pre-approval request to your lender. The lender will check your credit score and give you a letter. This letter helps while home shopping as it shows that you have the finances to back your offer. The pre-approval letter is valid for a period of 60-90 days.

M O R T G A G E A P PL I C A T I O N: Once you have shortlisted a home, it is time to make the mortgage application. The application is the formal beginning of your mortgage journey.

# STEP 2 : Conditional Approval

P R O V I D E D O C U M E N T S : The lender will ask documents related to your employment status, income, other assets etc. It is a good idea to be in close touch with the lender and provide documents as soon as possible so that delays do not occur.

C O N D I T I O N A L A P P R O V A L L E T T E R: Once the lender has the required documents, they will issue a conditional approval letter It will mention what the mortgage amount you have been approved for and interest rate and by which date the loan application has to close It will also mention any condition that has to be met for final approval.

H O M E A PP R A I S AL: Now, the home appraisal will happen. It will be arranged by the lender. This process will take anywhere from 3-10 days and the appraiser will send the report directly to the lender Check with the lender to make sure the appraisal value is equal or more than the purchase price. If it is less than the asking price, you will have to pay the difference from your pocket conditional approval.

# STEP 3 : Final Approval

T A K E T I M E T O A P P R O V E: It could take a few days or a few weeks to go from conditional approval to final approval Once everything is in order and all conditions are satisfied, the approval should come through in 3-4 business day.

W O R K W I T H T H E L E N D E R: Work closely with the lender to get the fastest results for your loan Sometimes you cannot satisfy the conditions yourself. Home appraisals and title searches depend on third-party services. Follow up with the service providers to see the progress made. Appraisers must rely on the seller’s availability, which can be another issue. The lender will also perform another credit check and employment check on you. So, make sure you do not change jobs in this period

C L O S I N G D I S C L O S U R E: Once the loan is approved, you will receive a Closing Disclosure or CD. This is a 5-page documents which mentions, you will receive it at least 3 days before the closing. So, you can double check everything and bring to notice any discrepancy you have encountered Mortgage amount Projected Monthly Payments Closing Costs Cash to Close.

#STEP 4 : Closing

S I G N A L T H E L O A N D O C U M E N T S : Review and sign all your loan documents. Make sure you understand the terms of each document. If something is different from what you expected or agreed to, do not sign until you resolve the issue. You provide documentation of homeowner’s insurance and inspections (if applicable). You give a certified or cashier’s check to cover the down payment (if applicable), closing costs, prepaid interest, taxes, and insurance. You could also send these funds in advance via wire transfer. Your lender distributes the funds covering your home loan amount to the closing agent.

CONGRATULATIONS: Once the closing appointment has finished, you will receive the keys to your new home. Depending on the arrangement with the seller, you could move in immediately or may have to wait if the seller has asked for some time to vacate Your monthly mortgage payment will start one full month after your closing date.

 

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For further information on joining Carlton Realtors Kenya, please complete the enquiry form or call + 254 113 656 59: