How To Get A Mortgage Loan
Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. Understanding the mortgage loan process is important so that you can then focus on the other important parts of buying a home.
Step One: Choosing The Right Loan Officer and Broker.
Choosing the right loan officer can mean the success or failure of your entire home purchase. The majority of escrows fail because financing cannot be obtained at the last minute, usually because of something the loan officer overlooked.
We work with some very well-qualified loan officers who can provide references for you. Please let us know - we would love to direct you toward one of them.
Step Two: Gather Required Documentation
Gone are the days of "stated income" loans where borrowers were not required to prove their creditworthiness. At the minimum, your the loan officer you end up working with will want to see 30 days of your paystubs (if you are not self-employed), two years of your most recent tax returns, bank statements covering at least two months, your driver's license and social security card.
Gather these documents together, and have them ready to fax or email to your loan officer with your loan application. You may be asked for more, but this is a great list to start with.
Step Three: Submit Loan Application and Run Credit.
The standard loan application in the U.S. is form 1003 (ten-oh-three). Your loan officer will ask you to fill this out over the phone, on their website, or in person. The 1003 covers personal data, employment info, real estate owned, liabilities, assets, and federally required loan questions.
Step Four: Review Loan Options and Start Home Shopping!
After receiving your loan application, your loan officer will run your credit, and let you know what loan programs and rates you qualify for. They will also let you know how much home you can afford.
After choosing a loan program, you will receive a pre-approval letter from your loan officer that you will need to submit with your offer on your new home. The pre-approval letter lets the sellers know that you qualify for a mortgage loan.
Step Five: Underwriting and Escrow
When your home offer is accepted, your loan officer will coordinate with the real estate agents to get information on the property. You will be required to pay for an appraisal, which determines the market value of your new home, and typically costs $450-$500.
When enough property information has been collected, your loan file will be submitted to the "Underwriting" department, who are the final decision makers on your loan file. They will request any additional documentation they need from you, and get your loan documents prepared for signing.
Near the end of your escrow period (usually between 30-60 days), you will sign your loan documents and give your down payment money to the escrow company. When your documents are done, your new mortgage will "fund", which means the loan money is sent to the escrow company for disbursement to the appropriate parties.
Congratulations, and enjoy your new home! Remember to please call us to get this process started!