The Mortgage Process

 

You are 12 easy steps away from closing on your 1st mortgage or your 7th mortgage. The process consists of the same simple steps for whether you are purchasing or refinancing your home. Below is a timeline of what to expect during the 30-45 day process:

 

1. Do your homework - Prepare yourself and your credit to take on a new mortgage loan. You want to make sure you have all your payments up to date and anything that needs to be paid off is paid off your credit profile. Pull a free annual credit report from each of the bureaus to make sure you are not in for any surprises.

 

2. Save the funds - This is especially important for purchases. Make sure you have enough money set aside for the costs that a mortgage loan requires. Calling a mortgage originator is a good way to get an estimate on what to expect.

 

3. Shop Rates + Ask Questions - Call around local Credit Unions and Banks to see what the going rate is. Ask questions about the products you are interested in. Be a smart consumer!

 

4. Choose a Lender - After you have narrowed it down to the best product, choose a lender and apply. An application is the only way a lender can give you an accurate quote on loan terms.

 

5. Review + Sign Loan Disclosures - Your lender will give you an initial packet of disclosures to sign that outline the product they are offering you. Review these at home or if the packet is intimidating set up an appointment with your Originator to go through the packet together. Write down any questions you might have for your Originator.

 

6. Collect Requested Documents + Submit to Lender - Your lender is going to ask you for documentation to support the application you submitted. This is going to cover income, debts and assets.

 

7. File Processed by Lender - When your Lender receives all requested items, they will process your file to make sure the documents support the application.

 

8. Appraisal + Title Ordered - If everything looks good in the step above, the lender will move on to ordering services for the loan. This step validates the property you have chosen.

 

9. Services Received - When the appraisal and title work comes back in, the lender will review the documents for any red flags.

 

10. Final Look @ File - If the services support the collateral, the lender will then take one final look at the file. You might be asked for additional documents at this time.

 

11. Final Appproval + Set Closing Date - This is the best step. You have final approval and are ready to close on your mortgage loan. You will set up a time with your Originator to come in to sign.

 

12. Close your Loan - You get a hand cramp at this step, but it is well worth it. You will meet to sign the closing package.