The Anatomy of the Mortgage Loan Process
Some start the whole process of getting a mortgage once they’ve found a home they’d like to put an offer on. I highly recommend starting with steps one and two before you start looking. Sellers appreciate offers from buyers who have already been pre-qualified for a mortgage. It’s sometimes the edge over an offer from an interested buyer who has not even started the mortgage process.
Step 1 – Apply for Pre-Qualification
With the help of some basic personal information and a credit report; you and your loan officer will determine what size loan you would qualify for to borrow and what is most suitable to your budget.
Step 2 – Initial Underwriting
After pre-qualification – I will collect documentation, including proof of income, and submit your file to a processor, who will organize information for initial underwriter approval. Your file goes to an underwriter, who acts as the judge and jury for you loan approval. If everything’s within the guidelines, you’ll be “conditionally approved”.
Step 3 – Get Official Property Approval
If you are making a purchase, I wait for the offer to be made and accepted. Meanwhile, the processor will order a title report and an appraisal report, confirming we are good for a legal transfer on a property that is in working order. These reports then go to the underwriter.
Step 4 – Final Loan Approval
All reports and documents go back to the underwriter for final sign off. Don’t worry if additional documentation is requested by the underwriter; it’s not uncommon and that’s what a great mortgage team will help you with!
Step 5 – Go to the Title Office to Sign Final Documents
You’re now in the clear to close! We will create paperwork for you to sign to make it official. It is then sent to the title office. Get your pen ready because it’s time to sign! You’ll sign on the dotted lines and bring any remaining cash that may be needed for closing. (this is not always the case – it depends on your specific mortgage scenario). All signed and notarized docs, including the deed, are sent to funding . Funding usually takes place 24-24 hours after closing, Our loans are typically funded before you leave the title company! The signed deed gets filed at the courthouse.
Step 6 – Receive Funding and Home Ownership
Once escrow releases the money to the seller, and ownership is officially registered; you will receive the keys to your new home!
You should feel comfortable with your mortgage banker. We pride ourselves on the amount of referrals we receive from former customers due to a good experience with us. I hope you’ll give us a chance to make your mortgage transaction a smooth one.