The Loan Process
Pre-Approval
Before you
begin shopping for a home, it is best to become pre-approved for
your home loan. This approval will help you determine your
maximum purchase power, as well as your comfort level. Most
sellers will require you to submit a pre-approval letter with your
purchase offer. At the pre-approval application, we will gather
basic information about your employment, income, assets, and debts. We
will also access your credit report at this time.
Ability to repay the mortgage is determined by analyzing your
employment, income, and debt. Generally speaking, your monthly obligations (including the proposed housing
payment) need to stay at 45% or less of your total gross monthly
income.
Your credit report documents your financial behavior
over the past seven years -- how much credit you have, how long you've
had it and whether you pay your bills on time, among other things.
Typically, we will focus on the most recent 24 months of credit
history.
During this phase, we will provide you with an estimate of the
various fees and/or closing costs you should expect. This
estimate will include our fees as well as any third party charges.
It is important to remember that there are no rules, just
guidelines. We manually review all loan applications to insure
you receive the best mortgage program, at competitive rates.
Mortgage Programs and Rates
There are many loan programs from which to choose, each with
different rates, points and fees. We will help you
choose the right loan program by evaluating your situation and
recommending the most suitable mortgage program(s), thus allowing you
to make an informed decision.
Processing
Once you purchase a home, the final processing of your mortgage
begins. Your Processor will verify your employment, income,
assets and debt. They will also order an appraisal and title work
on the subject property. Upon receipt, your Processor will
examine the appraisal and title report, checking for property issues
that may require further investigation. The entire mortgage
package is then put together for submission to the underwriter.
Underwriting
Underwriting is the detailed analysis preceding the granting of a
loan. The underwriter is
responsible for determining whether the package meets the loan
program's guidelines. If the loan is acceptable as submitted, the loan is put
into an "approved" state. If more information,
documentation, or clarification is needed, the loan is put into
"suspense" and the borrower is contacted to clear the
"suspense" items (usually this means that additional
paperwork is required).
Closing
Once your loan is approved, the file is transferred to the closing
department. The closing department prepares the documents you
will sign at the closing. The closing typically will take place
a title company. At closing, you
will sign the final loan documents and obtain the keys to your new
home.
Summation
A typical mortgage transaction takes between 21-30 business days to
complete. Contact us today to
discuss your particular mortgage needs or Apply
Online and we will promptly get back to you.
