01
Application
There are two application forms: the short form for quick mortgage essentials and the long form for detailed information and financial documentation. A loan officer will assist you, compiling application for processing. The Processor verifies your income and assets before sending it to the Underwriter. Pre-approval is usually issued within 24-48 hours, often on same day, depending on cooperation from all parties.
02
Processing
After compiling your application and documents, the Processor will verify income, employment, and assets before sending your file to the Under. This may involve phone verifications and obtaining documentation from your employer. A payoff will be ordered, and a Title Search will confirm all liens. Required documents include: current pay stub, two months of bank statements, driver’s license, two years of tax returns, and the latest quarterly statement for retirement funds.
03
Appraisal
The Appraiser assesses the fair market value of your home by inspecting its condition, size, room count, materials, and acreage. They will schedule the appraisal with you or the seller, depending on whether it's a refinance or purchase. Costs are standard for single-family homes unless the property is unusual and payment is required in advance since appraisers are independent contractors.
04
Underwriting
The Underwriter approves your home loan after verifying your income, credit, cash reserves, and property. If everything meets the guidelines, a conditional approval will be issued, listing remaining items needed to close the loan. Promptly provide any additional information requested, as the Underwriter job relies on accurate documentation.
05
Lock Your Rate
Mortgage loan rates may change daily. To ensure that you receive the rate you were quoted, you may elect to lock in your rate by paying an up-front authorization fee. Your loan officer will educate you on the locking of the rate and provide all available options and loan programs.
06
Escrow & Title
A title company will hold the money and documents until all conditions are satisfied. Title work will be prepared, including a title exam to ensure the title to the property is clear. Other title documents such as the mortgage note and deed will be prepared.
07
Closing & Signing
There are costs associated with processing and closing a mortgage loan, such as application fees, points, title, insurance, and credit processing. A closing agent will prepare and send loan closing documents package to the closing company and wires loan funds to the closing agent. When budgeting for your new home purchase, be sure to factor in closing costs (this cost will be provided to you in our free good faith estimate). The documents will be sent to a title company for you and the seller to sign. Funds such as any remaining down payment and closing costs will be due at this time. Mortgage closing costs normally include such items as appraisal fees, title exam, settlement fees, title insurance, credit report fees, and application fees.
08
Funding & Title Transfer
When all funds are collected and the contract has been verified, the title is transferred and the purchase price funds are disbursed to the seller. After this step, you can take over the keys to your new home—congratulations!