The mortgage process can be overwhelming if you’re not sure of what to expect when purchasing your home. Here’s a brief overview of the mortgage loan process to get you started:
Step 1: Pre-Approval
You've made the decision that it's time to find a home or refinance - now it’s time to get a pre-approval. A mortgage broker will help you find the best financing option available for you and get you pre-approved.
Step 2: Find A Home
Once you’re pre-approved, it's time for you to work with a Realtor to find your new home. Once you've made an offer and it's been accepted, be sure to let your lender know to ensure your loan is processed as soon as possible.
Step 3: Processing & Underwriting
After you've found your new home it is time to pull together all the necessary paperwork to get your new financing underwritten and approved. There are a wide variety of loan programs to choose from - and the documentation your lender will need from you depends on the specific details of your transaction. Your lender will guide you through the information requirements and make it as easy as possible. Be sure to get them all information they ask for as soon as you can. The sooner they have all the required information, the smoother the loan process will be.
Step 4: Underwriting Approval
Underwriting will give you an initial approval for your financing, but there usually are some small details or additional information that need to be finalized before final loan approval. Your lender will work closely with you to gather any additional information required by your specific loan program so you can close on time.
Step 5: Final Approval
At this point in the process, you will receive final underwriting approval on your financing. Now it's time to get your closing documents prepared for the closing.
Step 6: Closing Documents
Your lender is now ready to prepare for closing your loan. They will manage the process of working with the Title Company to make sure all the appropriate documents have been prepared. Having the documents exactly right for closing will ensure that your loan will close accurately and easily on the scheduled closing date. They will make sure all your last minute questions are answered and you know exactly what you need to bring with you to closing - including any cash amounts you many need to bring to closing. When you finish signing your documents, you are ready to move in to your new home!