Mortgage Process

A good lender listens to their client’s needs, evaluates their situation, and recommends a loan that fit their needs. A home loan should help meet your financial goals now and in the future. There are many types of loans available, so you should know your options. Some common loan types include:

  • Conventional
  • Jumbo
  • FHA
  • VA
  • Fixed Rate
  • Adjustable Rate

 

Pre-Approval:

Before you even start looking for your new home, the very first thing you should do is get pre-approved for a loan. Once pre-approved, you know what budget you can afford. Sellers are usually more comfortable accepting your offer with a pre-approval. Click here to learn more about Pre-Approvals.

 

Acceptance Of Your Offer:

Once the contract is signed by all parties, the clock starts ticking to meet all the deadlines that are outlined in the contract. Mortgage applications, inspections, appraisals, and many other deadlines will need to be met to ensure a smooth closing.  The first step for your mortgage after acceptance is to fill out a Mortgage Application authorizing the lender to process your loan.

 

Mortgage Underwriting:

The underwriter reviews the loan package to verify that it conforms to all requirements for the loan. They may also review the appraisal, title report, and/or do additional verification of employment, mortgage payments, and/or credit in deciding on the approval of your loan.

  • Appraisal: The appraisal is required by the lender to insure the property’s market value and to certify the property meets required standards.
  • Survey: A survey provides a graphic version of the property. It will show the structure fence line, boundary lines, encroachments, and easements of the property.
  • Homeowners Insurance: Before closing you must obtain homeowners insurance
    • Click here to learn more about the Insurance Process.

 

Loan Approval:

After your file has been reviewed, the lender approves it and sends it to the closing department. Sometimes the loan approval is conditional and you must provide additional documentation. Loan approval is the final approval to get your property closed.

Closing:
The lender draws the document package and sends it to the closing company for signing. Funding occurs when all papers have been signed and all conditions have been met. After funding, you will receive the keys and officially own your new home.  Click here to learn more about Title/Escrow/Closing Process.