Your mortgage process
Things have changed a lot in the mortgage industry over the last few years. In the past the process could have been as simple as signing an application, showing up to closing and you are a home owner.
Now things have changed and the best way to describe the process is that if you are borrowing money for this very important commodity the end lenders simply want to make sure that you can pay the loan back and they want the collateral documentation to verify this.
Yes, a big change from years past.
My goal has always been to make this process as smooth and efficient as possible. Now I know everyone says this, but a long, long time ago when I got my first mortgage and way before I was even in the mortgage industry all I could think of during the process was how I wanted this to end and never deal with a mortgage again. So therefore I really do strive to keep you as informed as possible and to make the process as easy as possible.
Here is a breakdown of what you can expect during the process and how to prepare:
When shopping for a home it is very important to at least talk to me to go over some figures to get an idea of what you can actually be approved for. This will take all of ten minutes and is painless. The obvious benefits are comfortably knowing what you can afford and feeling secure with the payment.
Typically when you are searching for a home a listing agent will always ask for a pre-approval. Being prepared is always a good thing.
You may have heard of the terms pre-qualification and pre-approval used a lot. They are similar, but with some differences. The pre-qualifications are based on assumptions. Basically over that ten minute phone call I will ask for your income, asset and credit history information and take your word for it without verifying them. This is a pre-qualification. Sometimes this may be enough. If you feel confident that the information you provide me is accurate and have no problem documenting this, then we are set with this process.
A pre-approval is when you actually supply me with the information regarding your income, assets and allow me to pull your credit. There is more security in this, and it will actually give you a head start in the process in that I have all this information and we are ready to move forward if you actually find a property and go to contract.
Below is a list of the documentation that we need for a pre-approval:
- Two most recent and complete tax returns; all schedule ( for self-employed borrowers)
- Two most recent W2′s
- Two most recent paystubs
- Most recent and complete bank statements; all pages
- A copy of your photo ID
Once you have found a home and have signed a purchase contract we can start the application process. Most likely at this point I will have most of your pertinent information and we will simply add the new property address to the application. I can send it, email it or you can come in and sign it. This along with the supporting documentation listed above is what we need to get moving forward
Once we receive the application and the complete supporting documentation we will submit your loan to underwriting and order an appraisal on the property. The underwriter reviews everything and make sure it meets guidelines and like I stated early verifies that you can actual pay this loan back. Since my team is very diligent during the pre-approval and application process this should be a formality.
There may be some conditions on the loan once it is reviewed by an underwriter. This may be additional supporting documentation or some brief explanations that the underwriter may need. If this is the case we will make sure that you understand why these conditions are being requested and the best way to satisfy them.
Now you are approved and ready to close!
Now that the loan is ready to close all parties work to coordinate this. The attorneys will schedule the closing at a title company. The title company’s job is to insure clear title on the property, put you on the title of the loan and they actually conduct the closing.
We will contact you before the closing to go over the final figures and what you need to bring to closing. You will either need to bring a cashier’s check or arrange for a wire transfer (we will help you arrange this).
At the closing you will sign A LOT of documents. Most importantly will be the Mortgage and Note. When you are finally done, they will fund your new loan, hand over the keys to you and you are now a new homeowner.
Happy Customer and neat gifts from me
From this day on I strive to be your lender for life and will always keep you informed of any changes in the market that may benefit you.