Mortgage Loan Process

9 Steps To Home Ownership

1. Initial Conditional Pre-Qualification

The first step in the mortgage process is always to complete a loan application. This is a very simple, but important part of the process. A loan application can be completed online, over the phone, or in person.

2. Loan Qualification

The loan consultation is provided to ensure your mortgage is structured to your unique and individual needs. A total cost analysis (TCA) is provided that will compare various loan options and scenarios.

3. Gather Your Necessary Loan Documents

You will be provided with a list of required documents needed for your loan. These documents will need to be gathered and provided to your Loan Originator for their review.

4. Signing Your Initial Loan Disclosures

Once you have an agreed upon contract with the seller, you will sign your initial loan disclosures. Some documents can be electronically signed; however, some will require a physical signature in person or scanned back to your Loan Originator.

5. Loan Submission and Processor Review

Once documents are provided and disclosures are signed, your file is submitted for the Processor’s review. Documents are organized to prepare your file for underwriting. The appraisal is typically ordered at this time.

6. Underwriter's Review

The Underwriter reviews your file and issues either a conditional approval or denial. Additional information may be requested such as pay stubs, bank statements, letters of explanation, etc.

7. Final Loan Approval

After requested conditions are satisfied, the Underwriter issues final approval and your loan is cleared to close.

8. Closing Disclosure & Money Disclosing

Your closing disclosure will be sent to you at least three days before closing and must be signed before closing. It outlines all final terms and closing costs.

9. Signing

You will sign your final loan documents at closing and receive the keys to your new home.

What Costs Can I Expect?

• Earnest Money Deposit – Paid at the time of the contract offer.
   
• Appraisal Cost – Paid at or shortly after disclosure signing.
   
• Down Payment – Minimum required investment, if applicable.
   
• Closing Costs – Fees associated with processing, approving, and finalizing your loan (such as appraisal, title, and underwriting).
   
• Prepaids – Upfront taxes, insurance, and prepaid interest. If the loan requires an escrow account, the first year of insurance and some interest will be collected in advance.
   
• Home Inspection Cost – Optional; consult with your real estate agent.
   
• Warranty Cost – Optional; consult with your real estate agent at the time of contract offer.