Step 1: Loan Application
The loan application is the easiest, yet most important step in the mortgage process. During this step, you will enter information about yourself and any co-applicants which will be purchasing the home with you as well as information about your job and income. After submitting your loan application, you will also submit a credit authorization which will allow your loan originator to receive a copy of your current credit report and input that data into your loan application to calculate important debt to income ratios. This will help determine which loan programs you qualify for.
Step 2: Processing & Appraisal
During the Processing & Appraisal stage, you will work with your loan originator and assigned processor to provide different pieces of documentation. Some examples of documentation required will be drivers license, 2 most recent pay stubs from your employer, 2 most recent bank statements, 2 most recent years of tax returns, and any other loan program specific documentation such as a DD-214 form if you are a Veteran who is applying for a VA loan.
Step 3: Underwriting Determination
Once all documentation has been received and verified, the loan application will be sent to one of our highly trained and efficient underwriters. During this stage, the underwriter will be going through all pieces of documentation provided to ensure that your application meets all required guidelines for the loan program you have applied for. Once the underwriter has determined that your application has fully qualified, you will be issued a conditional loan approval / loan commitment which will contain just a few more conditions which will need to be satisfied before closing. Typically these include updated bank statements and one last check of your credit report and verification of your employment.
Step 4: Final Approval
After you have provided the requested items from your conditional loan approval, the underwriter will issue you a final approval – otherwise known as a CLEAR TO CLOSE!
Step 5: Closing Documents
Behind the scenes, our closing department will be extremely busy coordinating your closing documents with the title company. At this stage, final cash needed to close will be calculated based on the closing date and you will receive a Final Closing Disclosure no later than a minimum of 3 days before closing. You’re almost to the finish line!
Step 6: Closing Day
Closing day is here! You’ll arrive at the scheduled time to the title company or other pre-determined location in order to receive your closing documents. You will sign quite a few documents and then you’ll be on your way with a set of keys to your brand new home. CONGRATULATIONS!