Mortgage Process

Posted by Helen Sage on Wednesday, March 21st, 2018 at 8:30am.

Mortgage Process

There are a few key people in your home buying process and your mortgage lender is definitely one of them. Not only do you sign a 30-year commitment with a company, but these are the experts that walk you through the financials of buying a home. Having a high level of comfort and trust is important so that is where we feel the mortgage process begins.

You take recommendations, read reviews, and interview doctors, realtors, accountants, babysitters… your mortgage lender should be no different! Take your time to find someone you feel good working with. They can answer any questions, explain their process, and discuss loan programs that they have available. Once you find the one, they can run your credit and provide more accurate numbers specific to you and interest rates or programs that you are eligible for. As we mentioned in our home buying process post, this is the start of your home buying process. Having a good idea of your budget and where you would like your monthly payments to be allows us to begin your search! Checking your credit report also allows a lender to provide you with a pre-approval letter which is something you need to submit an offer on a home. At this point you will want to be cautious about how you spend your money and pay off debt. You do not want anything to negatively affect your credit so it would be best to run any large purchases or pay offs through your lender first.

From here, it’s time to get organized. Your lender will need you to provide documents, so it would be good to start compiling. We recommend creating a folder on your computer desktop or email to keep these documents handy. They may ask for them a few times! The list below are some things they may ask for, but your lender will go through with you exactly what they need. Most of this information can be gathered from documents such as pay stubs, W-2s, and Bank Statements.

Employment Information

  • Name, address and phone number of current employer
  • Position and length of time
  • Salary including overtime, bonuses or commissions
  • Income
  • W-2s
  • Pensions, Social Security
  • Public assistance, child support or alimony

Assets

  • Bank accounts
  • Investments
  • Real property

Debts

  • Current mortgage
  • Liens
  • Alimony or child support
  • Car loans
  • Credit cards

Financial Issues – you’ll want to be ready to explain and provide dates, as needed

  • Bankruptcy
  • Collections
  • Foreclosure/Short Sale
  • Delinquencies – late or missed payments

Property Information – once you have decided to make an offer, the lender will need specifics on the blow, which your Realtor can help provide

  • Property address
  • Sales price
  • Taxes
  • HOA dues
  • Estimated closing date

Once you apply for your loan and provide the documentation required, within three days you should receive a Loan Estimate. The Loan Estimate describes the terms and provides an estimate of costs associated with the loan.

From here your loan will go into underwriting for approval and the property appraisal will be ordered. Once approved, the countdown to closing begins. 5 days prior to settlement, your lender will re-verify all your information including employment status. 3 days prior to settlement, you will receive a Closing Disclosure. This should be similar to the Loan Estimate you received previously and will reflect a summary of loan terms, monthly payments and closing costs.

Settlement Day!

Your realtor, mortgage lender and representative from the title company will meet you at settlement. They will walk you through a large stack of closing documents. Your lender will explain how to handle payments and answer any questions you have along the way. Once you have signed all of the paperwork, you now own a home and have acquired a mortgage!

If you need a recommendation for a Mortgage Lender, the Campbell Sage Team will gladly recommend one!

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