How does the mortgage process work? From the minute I receive your application until your closing date (that’s when you get your keys!), I am here to help you. Here is a little more information on what to expect during your mortgage loan process.
Beginning the Mortgage Process
The first step in the mortgage process is to submit an application and authorize a credit check. You can submit an application securely online or I will take an application over the phone.
Verifying documents is absolutely essential to the mortgage loan process. It is generally best to submit these materials at about the same time you submit your application to ensure a quick and smooth mortgage loan process. Required documents include 2 years W2′s, 2 paystubs, 2 bank statements. I will explain what documentation is needed, but here is a more detailed list of required documents for your convenience.
After you have submitted your application and the required documentation, you may be pre-approved for a mortgage loan.
Processing Your Mortgage Loan
The mortgage approval process will move forward once you select a property to purchase, submit an offer letter and received a signed purchase agreement from the seller. Your Realtor will assist you with the stage, but it should move smoothly since you have already been pre-approved!
Once the purchase agreement is received and I have received your written consent to proceed with the mortgage application, I will order an appraisal to determine the property’s market value for financing. Appraisals are performed by qualified independent real estate appraisers, typically after your purchase offer is accepted by the seller.
In addition to the appraisal, I will select a closing company to research the property title. An abstract will be completed to determine the legal owner of the home and whether there are unpaid taxes, liens, etc. Meanwhile, our team of experienced processors will be verifying all the documentation you submitted regarding debt, income and assets.
The Loan Commitment Letter – Final Mortgage Approval
Our experienced underwriting team has the privilege of making the final decision regarding your loan approval. Underwriters evaluate all the information and make sure it aligns with your specific loan program guidelines. If all the required documentation has been received and no conditions are outstanding, a loan commitment or final approval is issued.
Our closing department will be notified of the underwriters’ final approval and begin assembling your loan closing documents, including the HUD 1 Settlement Statement. The HUD 1 Settlement Statement details all final numbers, showing the breakdown of costs and money needed at closing. Our experienced closing department will require your proof of homeowners insurance before a closing appointment can be scheduled. You must have one year of homeowners insurance paid prior to closing.
Closing Your Mortgage Loan
After proof of homeowners insurance is confirmed, a closing meeting is scheduled! You are very close to your dream of homeownership!
You are required to attend the closing meeting along with a representative from the title company. Your Realtor is typically present too. During this meeting all final signatures are acquired and final payments (certified check required) are distributed. And the best part…your will receive the keys to your new home!