Your mortgage consultant will collect documentation pertaining to your income and assets and will obtain a copy of your credit report. This information is used to determine the amount of a loan you will qualify for and the homes that are best suited to you. This is very important for you and your realtor to know before you start to search for homes. It is also needed when you submit an offer, so the seller knows you will qualify to purchase the home.
Once you have identified the property you want to purchase, your mortgage consultant will assist you in completing an application to borrow the money you will need in order to purchase your new home. During this step, we will guide you in deciding which loan product best suits your needs and lock your interest rate in.
Your completed application and financial documentation is sent to the processor who will make sure all of the necessary paperwork is present. She will complete all the necessary steps to get your loan file ready to go to underwriting.
An appraiser will evaluate the property to ensure it's worth the sales price. The appraiser will look at the home's condition, age, and size, and will compare the property to other home sales in the area. The settlement company researches the property to make sure you are taking ownership clear of any claims against the property. They will also be providing the title insurance policy, which covers you if anything is missed, and someone later makes a claim against your property.
Once the processor has compiled a complete loan file, the underwriter reviews the application in detail to make the final decision to approve your mortgage loan. This includes reviewing your employment history, credit history, and the appraisal report. You may be asked to provide additional documentation, which is not unusual.
Once your application is approved, you'll receive a loan commitment letter which outlines the details of your loan and any outstanding items needed prior to closing.
After you've received your loan commitment, the next step in the process is closing on your home. You will meet with the settlement agent to sign all the final papers to make the loan and ownership official. This is when you walk away with the keys to your new home.
All of the house hunting, paperwork signing, inspections, and meetings have finally paid off! Now it's time to say hello to making memories in your new home!