MORTGAGE APPLICATION PROCESS
From Application to Closing
Step 1 – Applying for a Mortgage Loan
- We take all the confusion out of applying by creating a process that allows you to start the loan process on your own time. This can be done in several ways: in person, on the phone, online, by fax, or by email.
- Once an application is received, I start the pre-qualification process. There are several loan programs and products, so during this step, we will help determine which loan program best meets your family’s needs.
Step 2 – Gathering Documents for the Application
- Preferably, gathering the documents happens at the same time that the application is taken. This is necessary in order to be more accurate during the initial decision process in order to obtain your loan pre-approval.
- Disclosures will be sent for you to review, sign, and return. These disclosures are necessary in order to process your loan application.
Step 3 – Purchase or Refinance
For Purchase Transactions:
- Start house hunting!
- Once you have found a house and your Real Estate Contract has been accepted by the Seller(s), we will need to obtain a copy of the fully executed contract with all signatures from the seller(s), buyer(s), and realtor(s).
- Now that an address has been established, we can start looking at locking in an interest rate. At your request, you may choose to lock the interest rate at current market, or choose not to lock, and float the rate. Your interest rate must be locked 7 business days prior to closing.
For Refinance Transactions:
- At this time we are looking at interest rates: we can lock in the interest rate if you feel that the market will move higher, or, if you feel the market has room to move lower and you are willing to take that risk we can “Float the Rate” in hopes that rates will be lower by the time your loan closes. Your interest rate must be locked 7 business days prior to closing.
Step 4 – Loan Processing
- The application for the mortgage loan is now with the Underwriter. The Underwriter will be reviewing all the documents provided in the beginning in order to meet the investor requirements for final approval and funding the loan.
- She will also order your appraisal on the subject home in order to determine the value in today’s market, along with ordering the title work. The Title Company that is chosen will do a title search on your subject property to determine what liens are on the property. This is necessary in order for the title company to provide the Bank with a clear title.
- Once all documents (title, appraisal, disclosures, your required documents, etc.) are received, reviewed, and accepted by the Underwriter, then your loan is ‘decisioned’!
Step 5 – Closing Process
- If the loan receives final approval, your file will now go to our Closing Department. Here, the closing instructions are emailed to the Title Company.
- The Title Company will prepare the Preliminary Settlement Sheet (HUD-1). This document will be emailed back to our Closing Department for approval. Once approved, your closing documents for signing will be emailed to the Title Company and waiting for you at closing.
Step 6 – Congratulations! It’s Closing Time!
- Here is where you will meet with the Title Company and they will present and go over the loan documents with you for you to sign.
- After closing, the keys to your new house will be turned over to you, and you are now a proud Home Owner.
- A closing typically takes about 1 hour, depending upon the questions you may or may not have at closing. Be sure to schedule a time that is convenient for you.
Time Frame for Mortgage Application Process
This entire process, from application to closing, takes about 3 1/2 weeks on average, depending upon complexity of the loan and the time it takes to gather the needed information from you and third parties during processing.
The time it takes to process the entire loan is typically determined by Steps 1 & 2. These two steps, done up front, set the tone for the loan process. If all documents needed are received right away, then closing your loan within 3 1/2 weeks is highly likely.
There are also times where a closing is needed quicker than the average time. If that is the case, please let me know when you contact me, so that we can set the proper plans in motion.