A Look at All of the Steps Involved in Getting a Home Loan
If you’ve decided you’re ready to become a homeowner you’ll need to get home loan. Getting a mortgage doesn’t need to be a difficult process, but it does have a lot of moving parts and many key players. As part of our commitment to keep you well informed, here’s a quick snapshot of what you can expect during your loan process from start to finish.
We will collect all of your personal documents and compile everything into a loan application which varies between 25-35 pages depending on the loan program. We do not need the original “signed” loan application, so feel free to email, fax or drop off once it has been signed. You can also scratch through any errors and pencil in necessary corrections.
To get pre-approved you have your credit pulled. A loan officer will also verify your income and assets. Be prepared and have the following documents ready.
- Previous two years of tax returns
- 2 years of all w2’s
- Last several pay stubs
- 2 months of bank statements
- Driver’s License
- Social security card
While in this status, the processor will verify your dates of employment (current and previous), verify rental history (if applicable), order a flood certificate, order tax transcripts, open title work and order appraisal (if applicable). After all of these items have been completed, your loan will be sent to the underwriter for initial loan approval.
Submit to Underwriting
Now that we’ve gathered all initial documentation & verifications on your loan. The loan has been sent up to the investor and an underwriter will be assigned for review. This process takes a few days. As soon as we have initial loan decision, you will be notified.
What is the underwriter’s job?
The Underwriter reviews all of the documentation that you, the borrower, and we the Mortgage Banker have provided. It is their job to determine if you, as the borrower, represent and acceptable factors to proceed with the loan.
What else could the underwriter ask for?
Here are some common conditions that the underwriter could ask for before he/she issues final loan approval: Additional documents to prove your income, such as an updated paystub; documentation on a large deposit in your checking account to prove that the funds are your own; proof of homeowner’s insurance, etc.
The Underwriting conditions have been gathered and sent to the underwriter for review. This process takes a few days. If the Underwriter deems all conditions as “acceptable”, he/she will issue a final loan approval (or clear to close). If the underwriter notices any other items that he/she needs, a new Approval will be issued.
Time to Close
We have received final loan approval and now your closing date and time will be scheduled with the closing attorney. Closing is the final step in the mortgage process and is when all of the funds are distributed to the receiving parties, and all of the paperwork is finalized and signed. The closing attorney will contact you to schedule a date, time and inform you of any funds needed at closing (if applicable).
The Preferred Lending Solutions team has created a program that focuses on putting sellers in the perfect position to get their homes sold within 30-days under contract. Our lenders work alongside listing agents and home sellers on a step by step strategy on becoming “Mortgage Fit.” This 30-day close guarantee program takes sellers through several areas of concentration. Traditionally most of these steps take place after the property is under contract.
Our program offers sellers the opportunity to have this work completed before ever going under contract. This ensures contract dates don’t expire, lock dates don’t expire and liens or home condition issues are addressed up front. This saves not only valuable time but money through the process.