Mortgage Process

Make no mistake, there's a lot involved in the mortgage process. You wouldn't be on our website if you could fill out a one-page application and get the best loan for you all in the same day. What we do is most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move your family into your new home, saving money and planning for the future.

There are four main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for

  • Once you have decided to go with a certain lender and signed a purchase contract, it is time for an actual credit approval verifying income, liabilities and your ability to repay the loan.

    Most loan applicants go to their loan interview with a signed copy of purchase contract. A purchase contract for the house will specify the amount of your down payment, the price you will pay for your house, and your proposed closing date. When you go to apply for a mortgage, the lender will use all these data to calculate whether the house you want to buy can serve as collateral for the amount of money you wish to borrow.

    Your ability to obtain a mortgage to a great extent depends on the information contained in your Credit Report. So, it's a good idea to get your credit report, before you apply for a mortgage, and correct errors.
  • To ensure that your mortgage application will be processed as quickly as possible, it's important to bring all the proper information to your loan application interview. Click on the Mortgage Application Checklist for a list of documents most lenders will require in order to process your mortgage application.

    Typically, you will complete the Uniform Residential Loan Application, that is widely used in the mortgage industry, during the initial interview. Keep in mind that probably you will be required to pay an application fee, credit report fee and the appraisal fee when you submit the mortgage application.

    After you apply the lender will begin the work of verifying all the information you've provided. This loan approval process, described in the next step, can take anywhere from one to eight weeks, depending on the type of mortgage you choose and other factors. Check out our Consumer's Toobox for a checklist of documents needed in applying for a mortgage.
  • During final approval, an underwriter looks over all the paperwork and loan details and decides whether or not it supports the preliminary approval issued earlier. If the application is found acceptable, the firm commitment is issued to the borrower and the lender prepares for the closing of the mortgage.

    A few key items reviewed include:
    • The Property: In this case, they review the appraisal report to verify value.
    • Total Debt Ratio: This is the ratio between all your stable sources of income against all your debts. Debts and income used in this process may vary based on loan program chosen.
    • Cash Reserves: After your loan settlement costs are paid, this is the amount of money left over in your bank account.
    • Credit History: Looking at your current and past payment history is a measure of how likely you'll repay your loan.
    • Employment History: The stability of your income, and how likely it is to continue, is reviewed.

    Today an automated underwriting system is becoming more and more popular. It enables lenders to obtain a risk classification without traditional manual underwriting. Automated underwriting shrinks the mortgage approval process from weeks to minutes, saving borrowers time and money and eliminates much of the frustration and uncertainty involved in getting a mortgage. The objectivity of the system also assures consumers that their applications will be evaluated fairly.

    The actual mortgage closing is one of the most important steps to the home buying process. After you have selected a home, found a good loan at a nice rate, and gotten approved, closing is what stands between you and the best purchase of your life. Closing isn´t all fun and games, though. There are some steps that you must take in order to ensure that the mortgage closing process is a smooth one. One of the most important things to remember throughout mortgage closing is to keep in touch with the lender at all times. If you have done your homework, then you probably selected a lender who doesn´t mind providing service and assistance. It is up to you to take advantage of that service, though. If they asked for extra documentation at closing, then be prompt about supplying it. Check in with them after a while to make sure that they have everything that they need.
  • The actual mortgage closing is one of the most important steps to the home buying process. After you have selected a home, found a good loan at a nice rate, and gotten approved, closing is what stands between you and the best purchase of your life. Closing isn't all fun and games, though. There are some steps that you must take in order to ensure that the mortgage closing process is a smooth one.

    One of the most important things to remember throughout mortgage closing is to keep in touch with the lender at all times. If you have done your homework, then you probably selected a lender who doesn't mind providing service and assistance. It is up to you to take advantage of that service, though. If they asked for extra documentation at closing, then be prompt about supplying it. Check in with them after a while to make sure that they have everything that they need.
 
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