The first step in mortgage process is to determine how much money you can borrow and complete a full mortgage application. Our mortgage professional will calculate your buying power and explain different finance options that are best suited for your budget. The initial stage does not guarantee a mortgage but it provides the knowledge of realistic expectations with respect to spending limits.
Submit your financial documentation supporting the mortgage application. It must be verified by underwriters. Documents include 30 days’ pay stubs, 2 years of tax return, 2 years W2 and 1099, photo, current and saving account statements, and recent investment account details.
When all parties have agreed to the terms of mortgage, you will meet your mortgage officer to discuss the different financing options you are qualified for. Your mortgage officer will verify all the information provided by you. When the type of mortgage and terms have been determined, you will sign the mortgage application and estimate. The estimate may not be 100% accurate in initial stage but it does provide you a realistic picture of your transaction. If any discrepancies are found, your mortgage officer will troubleshoot to straighten them out. This information includes:
- Income check
- Credit check
- Asset evaluation
- Property appraisal
After the pre-approval process, the process of buying a home begins. You may prepare a list of inventory that suits your criteria. When we locate the perfect home, your mortgage officer will present it to you.
The underwriter’s job is to assess the risk of lending you a mortgage. Your credit history, employment history, income and your ability to repay will be considered for lending you a mortgage.
A capable home inspector will conduct a thorough inspection of your asset. Any structural or material defects in the property will be checked and written report of the findings will be given to you. If any defects need to be repaired, the realtor can submit a building resolution document that request the seller to provide a credit for repairs. Mortgage officer will order an appraisal on the property from one of the approved vendors. The appraisal report is needed for the underwriting to provide a collateral assessment.
Your file will be submitted to underwriting team for the review. The underwriter will issue an approval with some conditions. These conditions need additional clarity. After you meet the expected conditions, the final approval will be issued.
When all the documents have been signed off by underwriting, the final approval will be given. It is important that the final approval date is set prior to your mortgage commitment date on the contract. Being updated and providing all the requested information will allow us to meet the designated date without any delay.
Review all the documents prior to signing. Make sure that interest rate and mortgage terms are as per your requirement. Also, verify the name and address on the mortgage documents are correct and accurate. The closing appointment typically occurs in front of notary public. Federal law gives 3 days to review the documents before your mortgage transaction closes.