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Mortgage Process
Get Pre-approved:
Start by finding a qualified lender you feel comfortable working with. A trusted lender will guide you through the process and help you get pre-approved. Being pre-approved gives you a clear understanding of your budget, funds to close, and the price range you can consider when searching for a home. Additionally, most real estate agents require a pre-approval letter before scheduling home viewings.
Find a Home:
Once you’ve found the right home, your real estate agent will help you prepare and submit a purchase offer. After your offer is accepted, you’ll work with your lender to complete and submit a full mortgage loan application.
Submit Your Loan Application for Processing:
Your Mortgage lender will guide you through the application process and assist with submitting the necessary preliminary documents for loan processing.
Loan Estimate:
You will be provided with a loan estimate within 3 days of starting the mortgage application. This document breaks down all the costs of getting a mortgage. This is an estimate of what your monthly mortgage payment will be and the expected funds to close.
Appraisal:
Your lender will begin processing your application and order a property appraisal from a licensed appraiser to determine the home’s value. It’s important to note that an appraisal is required for both purchase and refinance loans, whereas a home inspection—though highly recommended—is not required by the lender.
Underwriting your loan:
After processing, your complete loan file will be reviewed by an underwriter, who will verify that the information meets the lending program’s guidelines and that the application demonstrates creditworthiness. Loan approval decisions are made in accordance with fair lending laws and are never based on race, color, religion, sex, national origin, familial status, age, or disability.
Conditional Approval:
If your loan application meets the required approval criteria, the underwriter will issue a conditional approval. This means the loan is preliminarily approved, subject to certain conditions that must be met before closing. These conditions typically involve providing additional documentation to meet program requirements or further demonstrate creditworthiness. Common examples include updated pay stubs, recent bank statements, or letters of explanation for items in your credit report.
Final Underwriting Approval:
Once all requested conditions have been submitted and reviewed, the underwriter will issue a final approval. At that point, you will receive a Closing Disclosure, which details all costs associated with your loan and specifies the exact amount of funds you will need to bring to closing (or the amount you may receive in the case of a refinance). In compliance with federal regulations, the lender is required to provide this disclosure at least three business days before closing, allowing you sufficient time to review the document before the loan can be finalized.
Closing Documents:
You will sign all required mortgage documents. At closing, the borrower will also need to provide any required down payment and closing-cost funds. These funds must be in certified funds, like a wire or a cashier’s check, as personal checks are generally not accepted.
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Email: Mindi@mortgageone.com