Mortgage Process from A to Z
Are you a first time homebuyer or been a while since you last purchased a home? Then, we have prepared a comprehensive summary of what to expect from prequalification to closing. Therefore, we describe each step of the mortgage process so that you know what to expect. Our process divides into 3 major segments called Gather, Process, and Move-In. In addition to reading the list, check out the more detailed explanations, as well as relevant article links.
Mortgage Process Comprehensive List
- Initial discussion of buyer goals and scenario
- Completing loan pre-application & pull credit report
- Loan Pre-Approval
- Provide detailed list of items needed to process file
- Loan program examples given & explained
- Prequalification letter provided to buyer and agent
- Buyer provides complete documentation up-front
- Processing – Gather & review file documentation
- Purchase contract executed
- Interest rate lock
- Provide & Explain mortgage disclosures
- Order services & finalize processing
- Submit file to underwriting
- Underwriting approval
- Appraisal received & provided to buyer
- Final conditions received & submitted
- Final approval and clear to close
Close & Move In!
- Closing Disclosure Provided & Explained
- Attend Closing
- Get the keys!
Not quite ready to buy? Then read our popular 7 article series: “I want to buy a home in less than a year or less!” Your Roadmap to get HOME. This series gives you in depth instructions to become an educated & happy homeowner.
Gathering Portion of the Mortgage Process
Homeownership begins with a thorough discussion between the buyer and loan officer. During this discovery phase, expect questions about income, credit, rent, and assets. Additionally, we ask about your goals which include payment and cash to close comfort levels. Then, we start the pre-approval process by using our automated systems as well as our expert review. Next, the buyer and their agent receive a pre-qualification letter. Additionally, we provide a detailed list of items catered to your specific scenario. Our goal is to build a very complete file that is ready for full underwriting even before your purchase contract!
Furthermore, we thoroughly explain mortgage options and answer buyer questions. We will even tell you questions you should be asking just to be very complete. Within a few days, the plan is to have all requested documentation. Then, we move to the next stage – Processing.
- Pre-qualification Letters: Understand the Levels of each
- Understand Possible Closing Costs When Buying a Home
Processing the Documentation
Our team of processors review, organize, and process the paper work. In other words, we will order verifications of employment and rent among other processes. Once under contract on a home, we thoroughly review it & enter details into our system. The buyer then provides the insurance quote and choice of closing attorney. So the buyer can make an informed product decision, we thoroughly discuss loan options and terms. If desired, the rate may be locked at this point. Then, we provide and explain disclosures.
Once disclosures are signed, we can order the appraisal, title search, flood certification, and other services. Meanwhile, we finalize processing and the next step is underwriting submission. Typically, we receive the underwriting approval prior to appraisal receipt. Next we gather the remaining underwriting conditions. Once the appraisal is received, we email an original to our buyer plus we provide an easy to understand summary. At this point, we expect to receive a final approval quickly. Finally, the file moves into the closing department.
Closing and Move-In Segment
This is when it gets exciting! Moving day is not far off! First, our closing department will coordinate final numbers with the buyer’s attorney. 3 days prior to closing, the Closing Disclosure is provided to the buyers. Our loan officer will explain the final numbers line by line. This is to ensure the buyer is fully ready for closing. Finally closing day is here and we will be there to support as well as congratulate our buyer. The closing attorney or settlement company explains the closing docs and the buyer signs all docs. Once the signing is complete, we get the most popular question. “I have signed my closing papers, so when do I get my keys?“. So check out the article about the keys.
What Happens Between Closing and First Payment?
The deed is recorded! You are now a homeowner! Besides moving in, there are a few other areas to know. First of all, put your closing paperwork copies, appraisal, home inspection, and others in a safe place. Watch out for lots of junk mail offers filling up your mailbox. One such offer is bi-weekly mortgage payments and see our recommendation on this here. Additionally, there are offers for mortgage protection. This means term life insurance basically, so review your life and disability with an agent you trust. If you are not 100% sure of what to do in regards to your mortgage payment, please contact us.