Loan Process

When getting a mortgage there are steps you will go thru.  This article will go over the Steps of your Mortgage process and what you need to know.  Here it is:

1.Applying for Your Loan- At this point you have decided to apply for your Loan.  You will contact your Mortgage Professional(ME!) and do a loan application.  It maybe online or you may give your information over the phone.  Before applying do your research:

  •          Ask for a Referral from a Realtor or a close friend
  •          Read their Testimonials
  •          Google Your choice, do some research before making a decision
  •         Use Some One Local!!  If you have a problem it is nice to have come local. As an example  I go to all my closings and go over mortgage documents in person.  Some one on the internet   can't do that for you.

2.Pre-Approval- Your Lender has gone thru your preliminary information and has determined your you are Pre-Approved.  At this point you are pre-approved for your loan and the lender will give you a "good faith estimate", this will go over your fees, down payment, rate, term, etc.  At this point your lender should go over your different mortgage options: VA, FHA, USDA, Conventional, 2 mortgages, etc.  Now you are ready to look at homes with your realtor!

3.Found a Home- You did the fun and exciting part and found your dream home!  Getting a mortgage is not as exciting but is just as important.  You will now lock your rate with your mortgage lender and start collecting your needed documents.  And sign your loan documents.  Here is the list of items you need for your mortgage:

  •          Last 30 days worth of Paystubs
  •          Last 2 years w2's and tax returns(all pages)
  •          Last 60 days worth of bank statements and retirement statements
  •          Your Choice for Home Owners Insurance
  •          Copy of your Driver's License and Social Security Cards
  •          Copy of your Earnest Money Check
  •          Other items maybe needed based on your situation or loan type

4.Your Appraisal is ordered- At this point your appraisal is ordered.  An Appraisal determines your homes value.  How to Read Your Appraisal

5.Underwriting-Once the appraisal is back and the mortgage lender has all the needed mortgage documents needed, your loan will go into underwriting.

6.Official Loan Approval- Once your file is out of underwriting, it will be "officially" approved.  The loan approval may require some other documents.  Once all documents all submitted back to the underwriter...

7.Clear to Close- This the industry term for "your done!".  This means the underwriter has determined the loan is finished and you are okay to close

8.Getting Ready for Closing- Closing Documents are ordered for your closing and the day before or more you will get the HUD statement.  The HUD statement is a list of all the fees involved in the loan, it will also show the amount of money you will need for closing. 

9. Closing- You will sign your loan documents.  The loan is funded and congrats you are a home owner!!!!! 

Keep in mind this is a general overview of your mortgage overview.  A mortgage usually takes 30 days from time you sign your loan documents to closing on your home.  Of course there are examples where it can be faster or slower, but 30 days is a good amount of time to prepare yourself for.