We know buying a home is a daunting experience and the mortgage lending process can be equally as overwhelming. The process does not have to be cumbersome or better yet feel like a part time job. Our best advise is to lean on your trusted real estate professional and seek their advice on who they highly recommend to trust in the terms of a mortgage professional. Just like realtors, mortgage professionals are not all created equal. Some dot the i’s and cross the t’s and make the experience pleasurable, educating you along the way so there is no opportunity for turbulence or a misunderstanding. Sadly others proceed on a hope and pray approach – hoping and praying they do not encounter situations that could sour the experience or better yet detail the transaction all together.
We at Urban Provision, REALTORS® align ourselves we loan officers and mortgage companies who have come to know and trust. We would welcome the opportunity to introduce you to one of our favorites in the industry, but in the meantime here is a high level vantage point of what to expect before dipping your feet into the mortgage waters.
Mortgage Lending Process
Loan Application is completed and is submitted to your loan officer
Loan Officer evaluates the credit report, information submitted and cross-references the data with programs and their guidelines to determine eligibility.
Loan officer will provide you and your realtor with the maximum purchase amount based on your current debt to income paired with the lenders underwriting requirements.
Once the loan officer has established the best loan program, they will request supporting documentation such as paycheck stubs, W2’s, Tax Returns, Bank Statements, Investment/Savings/Retirement Account statements, etc.
Once loan officer receives and analyzes supporting documents, they will be able to issue a pre-approval letter and a Loan Estimate. The Loan Estimate is an estimate of costs associated with the loan.
Once you have contracted on a home, the property will be inspected, any items deemed to be concerning will be negotiated with the seller and then the loan officer will order the appraisal.
After the appraisal is complete, all required documentation to obtain financing from the lender is submitted to underwriting. At this time, all verifications will be completed including verification of employment.
Once the underwriter grants a final approval, a “clear to close” is given to the loan officer, the title company and mortgage company work together to prepare all closing documents.
The closing will be scheduled, any funds required for closing (ex: down-payment and/or closing costs) will need to be brought to closing in the form of a cashier’s check or sent via a wire transfer based upon the title company’s preferred method of delivery.
Once closing is complete, the mortgage company distributes funds to the title company, the seller is paid, then the home is yours!