When you find the home you want to purchase or if you decide to take out an equity
loan to re-mortgage your home you must go through the application process. After submitting your application to your lender you should promptly receive your acceptance or denial letter. If applying for an equity loan at your local bank the lender will ask you questions while filling out your application.
When a lender decides you are a good candidate for a loan the loan company makes it mandatory that you sign a "purchase contract". During the application process the lender runs a credit check to ensure you have no past defaults, judgments or any other negatives in your credit report.
Your income source will also be verified at this time. The lender will also seek out any liabilities you may have to figure out if you are able to repay your loan. Lenders, once they have accepted your application, will have your sign your "purchase contract" and at that point you can begin the process of buying your home. In order to close the deal you will also need an up-front deposit.
This contract covers the details about the home price, deposits, interest and the closing date. An interview is common place at this meeting. Papers are signed and prices are negotiated at this time. Many lenders will require the prospected home buyer to fill out a uniform residential loan application at this interview. The application could possibly cost you some upfront fees. These fees include the valuation and arrangement costs. The last step will be to make sure you know what you are getting into before signing the final agreement. Misunderstanding the stipulations of the contract could potentially put you in greater debt than need be at the closing of the entire process.