The Mortgage Loan Process: an Overview

There's a few things to do in order to get a mortgage loan.  You wouldn't be here on my site if it were possible to fill out a simple loan app and receive a great loan check cut in one day.  I will do most of the heavy lifting for you, so you can concentrate on what's important — preparing to move into your new home.  It's a jungle out there, let me be your guide!

Getting a home loan involves a number of major steps. 

Determine how much you can borrow

A couple of factors determine this amount.  What kind of monthly payment are you looking for that fits your comfort zone, based on your budget?  And given your unique credit, employment history, income, debt, and goals, how much will a lender loan you?  You may use the calculators on my website to get a general idea of your monthly payment amount.  I will do the refining and guide you to the right loan amount and best programs for you that meet your needs.  Because lender guidelines vary due to them adding additional guideline overlays, I will do the research with various lender guidelines to determine all programs that are available to you, with the best pricing.  Make sure you do not buy a new car, new furniture, appliances, apply for new credit, or move money around in your checking and savings account during this time!  You run the risk of changing your credit profile, causing more work for yourself, and not qualifying for the loan before closing.   We want to keep your dream coming true! 

Get pre-qualified for your loan

You will begin by sharing with me basic details about your employment, assets, liabilities, and residence history.  From there, you will send me your documentation necessary so I may do a detailed analysis of your financial situation.  I then run your credit report, and research the lenders and programs that fit your needs the best.  I do what is called a desktop underwriting, which gives me a computer generated loan analysis.  This is an electronic way of making sure you meet the guidelines for the appropriate loan program.  After we have gone over this information together, I will prepare you a pre-qualification letter.  You then sign the initial loan documents.  I then send your file to the lender for a conditional underwriting approval.  Now, you are qualified to go shopping for a home and write a contract.  Time to contact your Realtor, or I will be glad to refer you to some of the top seasoned Realtors in the business. 

Loan approval

Once you have signed the contract to purchase your new home, and the sellers have accepted the offer, it's time to get back into the mortgage process again.  I will order the appraisal, title work, survey, insurance, and prepare your file to send to underwriting for a final loan approval.  Your Realtor schedules the home inspection.  At this time I will also ask you for any additional information the underwriter may have requested and bring your file up to date, like additional bank statements and pay stubs.  If the appraisal value comes in less than the purchase price, I will ask you and your realtor to go back to the seller and re-negotiate a new lower purchase price, based on the lower appraised value.  It is important to understand that the lender will base the purchase price on the lower appraisal amount, if the appraisal comes in low.  If the appraisal value comes in at the purchase price, or higher, then we keep moving forward with the file, based on the contract price.  Your final paperwork is sent to underwriting.  Once we receive an approval from underwriting of "clear to close", the closing date and time is now scheduled.  The lender prepares the closing paperwork, and pulls your credit again to make sure you have no new debt.  You have been good and not applied for any new credit, haven't you?

Funding

The title company makes sure the closing papers are received from the lender and will prepare and co-ordinate the closing and exchange of wired funds.  You will receive a copy of the final costs prior to closing and we will go over everything with you.  You then go to your bank and arrange a wire transfer for your funds to close, to the title company, prior to the day of closing (no checks allowed).  You now concentrate on logistics involved in moving from your old residence to your new home. 

The day of closing, you show up at the title company or attorney's office, sign the final papers for the loan, the loan funds, and you receive the keys to your new home.  CONGRATULATIONS...DREAM COMES TRUE!!

NOW you can go out and buy the furniture, paint, carpet, appliances, car, etc., for the new home. 

You've answered all our questions, provided us with lots of information, we have jumped over some hurdles, but before you know it, you're moving!  This entire process takes anywhere from 30 days.  We take care of all the loan details and your dream comes true.  Call me and let's get started on making your dream coming true!