Take an in-depth look at the mortgage loan process itself, from the initial application to final closing on your home.
- Follow a loan through the internal process
- Who will assist you along the way
- Avoiding obstacles that stand between you and home financing
The Mortgage Process
With the help of your Mortgage Loan Originator, you decide on a loan program that works for you. The Mortgage Loan Originator sends you a full disclosure packet, which contains an application and a list of required documents that need to be obtained. You’ll fill out the application, gather the materials, and then submit.
After submittal, your Loan Processor is your point of contact and will be throughout the process. This person will review your information and ask you for anything additional that’s necessary to complete your application file.
Once everything is in order, the Loan Processor will submit your information to a loan Underwriter who will perform a meticulous examination of your documents and information. It’s possible that the Underwriter will request additional information on some unverified items. This part of the process may require some back and forth between the Underwriter and your Loan Processor to ensure that all government and lender guidelines are met.
After all the guidelines have been met and all information has been verified, your file will be issued a Clear to Close. Once this is issued, your loan processor can schedule the closing and the signing of the final documents.
At the closing table, it’s important to have someone you trust accompany you – like your lawyer or Closing Agent – who will represent your interests. Your closing agent will thoroughly review all details of the transaction, the closing costs will be due, and you will sign several pages of documents.
The Closing process can be stressful, but don’t let it detract from your excitement that the mortgage process is almost complete and the house you want can now be yours.
Congratulations! You’re a homeowner!
Obstacles to Financing
When it comes to financing a home, there are some issues that may cause a delay. Some points to keep in mind when you’re getting ready to start the mortgage loan process:
- Stay organized: Make sure you have the official identification documents, income supporting documents, tax forms, account numbers for bank accounts and credit cards, and a record of any current debt, whether big or small.
- Employment history: If there is a gap or gaps in your income history, be prepared to explain them. Documents from the state unemployment office are helpful, and sometimes it will be beneficial to write a letter explaining a gap in employment or a drop in income.
- Credit: To help bolster your positive credit history, you may want to start making purchases on your credit card(s) and then paying in full and on time. This may help you establish a line of credit by showing you borrow money and are capable of paying it back promptly when required.