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Process of a Mortgage

Buying a home is likely the biggest purchase you will ever make. We offer the knowledge and experience to help you through this very important chapter of your life. Although securing a mortgage has many steps, the basic process is broken down into 6 main parts. Knowing what to expect, especially if you're a first time buyer, will help you make solid decisions about your home loan purchase. We have listed the 6 steps for you to look and get a better understanding of becoming a home-owner.

During The Documentation Stage we will require you to provide all income and asset documentation. We will help you fine tune your preferred mortgage program, and determine what best fits you and your family's needs. While in the Documentation Stage, it's important that you refrain from any major changes to your overall financial situation.

  1. W2’s – From the last 2 years
  2. 1040 Federal Tax Returns – From the last 2 years
  3. 2 Most Recent Paystubs
  4. 2 Most Recent Bank Statements – All pages
  5. Copy of your drivers license

During this stage, it is critical that you don’t change any aspects of your financial picture. This means:

  • No Major Purchases (e.g. Purchasing furniture for you new home)
  • No Applying for New Credit (e.g. Obtaining financing for Car)
  • No Change in Employment (Please Don’t Quit Your Job!)

A home appraisal is an estimate of a property's value. We require an appraisal on your home before your final loan approval. This will safeguard everyone involved and ensure the property that is being purchased is worth the agreed upon purchase price and loan amount.

A home's appraised value is based on such factors as square feet, number of bedrooms, number of bathrooms, the location and age of the property, and interior improvements. These facts about your home will be compared with other homes that the Appraiser considers comparable to come up with your home's value. Although the Appraiser will not account for the following when determining your home’s value:

  • Roof
  • Appliances
  • Air Conditioning
  • Plumbing
  • Foundation
  • Windows
  • Floors

This is why we always recommend our clients obtain a Home Inspection in addition to their Apprasial. If you’d like the recommendation of a good Home Inspector, please let us know, we are happy to help!

During The Underwriting Stage, our Loan Processor reviews all the submitted documentation that you’ve provided and then turns it over to our Underwriting Department. The Underwriter is responsible for performing three critcal tasks:

  1. Organization – The Underwriter will compile and organize your documentation into a mortgage-ready file.
  2. Qualification – The Underwriter will reconstruct your scenario to enusre it meets our qualification requirements and guidelines.
  3. Verification – The Underwriter will verify that all information is accurate and authentic.

Once your file has been processed, our team of Underwriters will check the information on your application and supporting documents. A majority of loan applications, after their initial submission, will be approved with conditions; this just means the underwriter wants clarification and additional documentation. In order to keep your file moving along and on schedule, it's best to get any additional items needed as soon as possible.

When your loan comes back from the underwriting process with a "conditional approval", Congratulations! You are that much closer to your closing. Although this is a giant step in the process, there still may be some additional documentation that may be needed. Just like all the other stages of the process, getting any additional documentation turned in as fast as possible is essential. These may include:

  1. Additional Documentation
  2. Letter of Explantation
  3. Acceptable Appraisal Report

Once you have met all the required conditions requested, your file will be re-submitted to your Underwriter for final approval.

Yes! During this process there are no better words than "clear to close". This means all documentation has been approved and conditions have been met. At this point loan documents can be prepared for closing day.

Oh happy day! The moment you have been waiting for, closing day. Once you sign all the documents and your loan has been funded, you are officially "closed". Welcome to homeownership!