ten
steps
Application and Pre-Approval
The first step is to get pre-approved for a mortgage. This involves talking with a mortgage expert and providing them with essential financial information, such as income, assets, debts, and credit history. Your loan officer will then evaluate this information to determine how much you can borrow.
Pre-Approval Letter
The first step is to get pre-approved for a mortgage. This involves talking with a mortgage expert and providing them with essential financial information, such as income, assets, debts, and credit history. Your loan officer will then evaluate this information to determine how much you can borrow.
Home Shopping
Now the fun begins! With the help of your realtor, you can start looking for properties that fit your needs and your budget.
Processing
Once your offer is accepted by the seller, a contract is executed. This initiates the process of “Processing”. We will collect the essential documentation, order an appraisal and begin building your “case” for loan approval to present to an underwriter.
Inspection
While your loan is being processed, we HIGHLY recommend having your new home inspected. A few hundred dollars can end up saving you thousands in the future.
Underwriting
Once the processor has reviewed all documents provided and prepared your “case”, they will submit your loan file to an underwriter. The underwriting team will assess your creditworthiness, the property’s value, and its compliance with lending guidelines. They ultimately give the approval or denial of your loan.
Loan Approval
I Once the underwriting team completes their assessment and determines that your file meets the lender’s criteria, they will issue a formal loan approval. This approval will outline the terms of the loan, including the interest rate, loan amount, loan type, and any specific conditions that must be met before closing.
Clear to Close
“Clear to close” is the last step in the loan approval process. It means that the loan has passed all necessary underwriting requirements and conditions and has been issued the final approval from the underwriting department. It is now time to schedule a closing date with the seller, lender, and other relevant parties.
Mortgage Closing
At the closing, you’ll sign the loan documents and pay any closing costs (make sure you bring a cashier’s check for the amount your loan officer told you along with your ID).
Home Ownership
After the closing, the loan will be “funded” and you officially become the owner of the property. You will start making regular mortgage payments according to the terms outlined in the loan agreement.
If you think you’ve got a handle on the basics then click here to review all your options for buying your dream home today!
"Loans are what we do, not who we are."- CEO, Steve Jacobson
“Loans are what we do, not who we are.”
– CEO, Steve Jacobson
This may vary depending upon the specific type of mortgage you are applying for, as different agencies will need to be involved in the process. Typically the process plays out in a month or less, though some will go quicker. It is not uncommon to have the mortgage application processed within 10 days. It is critical that you get the application entirely completed, so that you can avoid any delays along the way.
The main thing that can delay the approval of a loan is failing to properly and completely fill out the applications. It is also important that you be completely honest on the applications, as any discrepancies may cause delays. In addition, changing jobs, having a change in your salary, changing your marital status or taking on additional debt can delay the approval of a loan.
Closing costs include items such as taxes, title fees and hazard insurance. Sometimes what is included in closing costs varies, and it can be impacted by the negotiation process on the sale price of the home, as the homeowners may or may not cover certain closing costs. You’ll want to have some money set aside to cover your closing costs.
Prepaids are items that you as the homebuyer pay at closing. This is a payment before the actual due date. These may be necessary depending upon the details of the closing. They include taxes, hazard insurance and other various assessments.
After you close, you’ll receive a letter that includes all of the dates and information that you need. If you want further details while you are closing, you should inquire about the specific due date of the first payment.
which loan type
fits your needs?
Take a look at our loan comparison page here to find out more about all the other loan types and get a better feel for which one fits your needs best!