5 Steps to Obtaining a Mortgage

 

Step 1 - Getting Pre-Approved to Purchase 

 

Starting your home buying process in the right place can make the entire process more enjoyable. Preapproval is important to: 

 

•     Determine a price range that is financially comfortable for you 

•     Save time by focusing your home search on only those homes in your price range 

•     Eliminate stress by completing most of the required paperwork up-front 

•     Show any Seller that you are a serious buyer who is ready and able to purchase their home 

 

What's the difference between a preapproval and a prequlaification?

 

This is a common question and it is important you know the answer. A prequalification is often an assessment made solely from a conversation with your lender. It does not involve a credit pull so it may be less accurate in assessing how much you can spend on a home. A preapproval, however, shows you exactly what you can afford with a documented letter. Now you're ready to shop for a home with a realistic budget!

 

Click to begin your pre-approval process today! 

 

Step 2 - Applying for Your Home Loan 

 

When you have selected a property and your purchase offer has been accepted, it is time to apply for your loan. Before your initial consultation with your lender, it is important that you gather the following necessary documents, and that you remember to bring them with you to your application meeting: 

 

•     Fully executed purchase agreement, including all addenda 

•     Application fee for appraisal and credit report 

•     Most recent 30-day pay stub(s) showing year-to-date earnings 

•     Past two (2) month's statements for savings, checking and investment accounts 

•     Prior two (2) year's W-2 forms (if self-employed, 1099, K-1's, year-to-date profit and loss statement, and corporate tax returns) 

•     Photo I.D. 

 

Additional Information that may be required: 

 

•     Prior two (2) year's tax returns 

•     Documentation of other income sources that you would like considered in repayment of your loan 

•     A gift letter from the person giving you a gift of money to assist you in the purchase of your new home (if applicable) 

•     Documentation of all outstanding loans, lines of credit, credit cards or any other outstanding debts 

 

Step 3 - Processing Your Home Loan 

 

Once you have chosen a loan program, your lender will begin to process your loan. They will verify the information provided in your application, as well as order an appraisal of the property you are purchasing. When they have collected and verified all of your information, your loan application will be submitted to underwriting for approval. 

 

Step 4 - Approving Your Home Loan 

 

Underwriters will thoroughly review your application, focusing on the following key factors: 

 

•     Your employment history and stability 

•     Your income as compared to your outstanding debts 

•     Your credit history 

•     Your available funds for down payment and closing costs 

•     Your certified appraisal of your property 

 

When all conditions are cleared, your loan is APPROVED. Written notification of your approval will be sent to you. 

 

Step 5 - Closing Your Home Loan 

 

Upon final approval of your home loan, your lender will prepare your closing documents and forward them to the title agency for closing services. A settlement coordinator will contact you to schedule a signing appointment. Once all required documents are signed and recorded, your home purchase is complete. 

 

Congratulations & Welcome Home