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
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.
Gather Your Necessary Loan Documents
You will be provided with a list of required documents required for your loan. These documents will need to be gathered and provided to your Loan Originator for their review.
Signing Your Initial Loan Disclosures
Once you have an agreed upon contract between you and the seller, you will sign your initial loan disclosures. Some documents can be electronically signed; however, roughly ten percent of the documents you are required to sign will need a "wet" signature, meaning they will need to be printed, signed and emailed/faxed back to your Loan Originator. A time can be scheduled for you to sign in person if your schedule allows or is preferred.
Loan Submission and Processor Review
Once you have provided all loan documents and have signed all initial loan disclosures, your file will be submitted for the Processor's review. At this time, all documents are organized to ensure your file is prepared for the next stage of the process. Typically, the appraisal is ordered during this stage as well.
The Underwriter will review your file and issue a "conditional" approval or denial. The Underwriter may request additional information for further review and clarification. This could include, but is not limited to, additional paystubs, bank statements, a letter explaining your unique situation, etc.
Final Loan Approval
After providing clarification documents that are acceptable to the Underwriter, he/she will issue a full approval and clear your loan to close.
Closing Disclosure & Money Disclosing
Your closing disclosure will be sent to you for your review at least three days before your scheduled closing and must be signed three days before closing. The closing disclosure will detail all of the final closing costs and terms of your loan, including how much your required cash to close will be.
YOU HAVE MADE IT! You will sign all final loan documents with the closing agent and receive the keys to your new home.
→ EARNEST MONEY DEPOSIT - This is done up front at the time of contract offer.
→ APPRAISAL COST - This is done up front at the disclosure appointment with the lender.
→ DOWN PAYMENT - Minimum investment required (if applicable).
→ CLOSING COSTS - Costs incurred to get your loan processed, approved, and closed (i.e. appraisal, underwriting fee, title fees, etc.)
→ PREPAIDS - Upfront property taxes, insurance and prepaid interest. If you have less than 20% down (or obtaining a FHA, USDA or VA loan) you are required to set up an escrow account for your future tax and insurance bills. You are also required to pay for a one year insurance policy to the company of your choice along with some prepaid interest which is like a partial mini house payment for the remaining days in the month that you close on your new home.
→ HOME INSPECTION COST - This is an optional charge. Please review with your real estate agent to decide. Not credited to down payment, closing costs or prepaids.
→ WARRANTY COST - This is an optional charge. Please review with your real estate agent at the time of contract offer. Not credited to down payment, closing costs or prepaids.