Understanding the Mortgage Process
A new home is one of the most important purchases you will ever make. The mortgage process and accompanying terminology can be very confusing and frustrating even for an experienced homeowner. We will strive to make your home buying process as smooth as possible. Our goal, with your help and patience is to facilitate the lenders for a a quick and efficient loan approval. Please understand that all mortgage applications are different and your individual needs are our number one concern. |
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At Application:
Please read and understand the list of documents needed at loan application and bring the originals with you at the time of application. Please take the time to gather all the names, addresses and phone numbers requested, as these are the most common cause of the mortgage delays. If you have any questions, or do not have the required documents at hand, please contact your buyer's representative at One Source Realty as soon as possible.
What happens after the application?:
Within 48 hours your complete loan package will be given to your loan processor and may require further information and general questions. If additional information is requested, please contact your buyer’s representative at One Source Realty within 24 hours. Your loan cannot proceed without this information.
The following list is what happens next:
Loan Processing: After your real estate agent has received your file they will verify that all of the requested information is included. Some questions may arise at this point and we may need your help. Any questions in regard to your file will most likely need to be answered in writing or with further documentation.
Underwriting: Once we complete the initial processing on your loan application, the file may need to be submitted to an underwriter depending on the type of mortgage program you have chosen. Underwriting time can range anywhere from 2 - 3 business days. Since the mortgage process is an art and not a science, the underwriter may request additional information. (Please do not be alarmed, this is not unusual). This will most likely be the last hurdle before approval!
Appraisal: As your home nears completion, an appraisal will be ordered to determine the market value. Once your home is complete some appraiser’s will revisit your home prior to closing to ensure that it is complete and built per plans and specifications.
Re-verification: Since there may be several months between loan approval and closing we may need to re-verify some of the information you provided at loan application. This is standard procedure but please remember these "very important" tips:
• DO NOT throw away your bank statements, pay stubs, or W-2's between the time of application and closing.
• DO NOT change your employment status (i.e. reduce hours, change jobs) without first notifying your real estate agent.
• DO NOT change your "credit picture" (i.e. Buy a new car, take out loans or open newcredit cards) without first notifying your real estate agent.
Ready for closing!: Once your loan is approved and your home is complete you will go to "closing," sign several documents, and take ownership of your new home. The closing attorney's office will contact you or your real estate agent regarding the final amount of money you will need to bring to closing. Please bring a certified check.
While this does not cover every single event during your loan application process, we hope this information provides you with some insight into the loan approval process. Remember to contact your real estate agent with any questions you may have.
