Understanding The Loan Process

1. PRE-QUALIFICATION

Starts The Loan Process

• Lay out a house shopping budget
• Analyze your credit

Determines Your Ability To Repay

• Verified by your employment history
• Ideal candidates have been employed for at least two years

Determines Your Willingness To Repay

• Determined by how the property will be used (primary residence, investment property, etc.) and credit reports

2. MORTGAGE PROGRAMS AND RATES

Picking A Loan Program

• Consider how long you'll be in the home and what your current financial situation is
• Your Loan Officer can then find the best program for you

Locking In A Rate

• Mortgage interest rates fluctuate daily, sometimes hourly, so it's important to work with your Loan Officer and utilize the best programs

3. THE APPLICATION

The True Start To The Loan Process

• With the help of your Loan Officer, this is where you'll organize all your information and documents and begin building the loan package

Getting A Cost Estimate

• From the application the Loan Officer is then able to build you a Good Faith Estimate (GFE) and a Truth-in-Lending Statement (TIL) which will cover the cost and fees involved with the loan

4. PROCESSING

You Will Need To Provide The Following Documents

• Tax returns from the past two years
• Two most recent pay stubs
• Bank, stock, and retirement account statements from the past two months
• Additional personal information or documentation may be required

Appraisal

• Formal evaluation to determine the value of the property
• Value is determined by inspecting the physical structure and existing improvements and comparing the property to similar properties in the area

5. APPROVAL AND CLOSING

Getting Approval

• Underwriter reviews the loan package and all supporting materials to determine if the loan is acceptable

Closing Documents

• Bring a certified check, if accepted, or wired funds for your down payment, also bring Photo ID and proof of homeowners insurance
• Once your mortgage has been funded and recorded, you will get copies of all the signed documents

Time Frame

• Your average mortgage takes between 3-4 weeks to complete

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Contact your agent today!