An overview of the typical home loan process:
Step 1: Get Pre-approved for a Mortgage Loan!
Meet with one of our Loan Officers directly or meet with a loan officer referred by your Realtor®, family, or friend. Get pre-approved for a loan so you have an idea of what you can afford. It always better to get “pre-Approved” instead of “Pre-Qualified”. Pre-Approved means that the loan officer gathered your income and assets information as well as pulled your credit in order to run everything through an on-line approval system such a sFannie Mae’s DeskTop Underwriter or Freddie Mac’s Loan Prospector. A “Pre-Qualification” does not do these things but, instead, gives you a “best guess” as to whether or not you will be approved for a home loan. A Pre-Approval carries more weight with a Seller than a Pre-Qualification does.
Step 2: Realtor® Assistance / Pre-approval Letter
Start shopping! Find the home you want. Before you make a bid ask your Loan Officer for a Pre-approval Letter with a specific price on the home you want to buy. This letter may give you an edge when you make the actual bid. Remember to inform your Loan Officer of any changes in the financial information that was provided at the time of pre-approval, as it may make a change in the amount or type of loan that you can qualify for.
Obtain an Accepted Purchase Agreement.
Step 3: Complete the Application Process
Now it’s time to get your loan application started. After consulting with your Loan Officer on various program options, lock in a set interest rate. You will then sign the initial loan application and loan disclosures.
Step 4: Loan Processing
Any documentation required from you is requested completed, and processed. Title work is ordered, an appraisal for the property is obtained, and the complete package is sent to underwriting for loan approval.
Step 5: Underwriting
The file gets underwritten and your loan officer will typically receive a “Conditional Approval” naming any items that the underwriter wishes to see and review in order to approve your loan. Once these items have been submitted and reviewed, the underwriter issues a “Final Approval” for your loan and the loan then gets submitted to “Closing”.
Step 6: Closing:
The Closing Department will create the documents needed to close your loan and send them to the title company. The closing completes the process of obtaining a mortgage. Your Mortgage Consultant and Realtor will tell you what to bring with you, and the Title Officer will explain each document you’re signing. Be sure to bring a current photo ID. Also, if any funds are needed from you at Closing, they will need to be in the form of a cashier’s check or an electronic funds transfer (wire). Personal checks or cash are not acceptable.
Be sure to sign your name exactly as presented on your paperwork. Plan ahead for moving day. Ask your Realtor® to confirm when you will receive possession of your new home.
Move in, enjoy your new home, and please refer us to your friends and family!