As a Lutherville mortgage expert, I take great pride in using my knowledge and experience in the mortgage industry to help educate my clients throughout the entire mortgage process. I have helped countless clients secure the financing they needed to purchase the home of their dreams and I am well aware of the stress that my clients feel when they do not completely understand the process.
I always take the time to answer any questions my clients have along the way to ensure that, as we move through the process together, they feel confident about the decisions they are making.
To help you get a better idea of what is involved in the mortgage process, I have created a list of the main steps that are common for most mortgages along with a brief description of each of the steps.
Step One – Pre-Qualification or Pre-Approval
To better help you with your search for the perfect home, I recommend completing this part of the mortgage process before you even start looking for homes. Getting pre-qualified and pre-approved for your home loan will give you a much better starting point as you will have a better idea of what you can comfortably afford.
Step Two – Application
Once you have found the home you want to purchase and you are ready to secure your mortgage financing, it will be time to apply for your home loan. The application process will require answering questions about your finances and providing your lender with all of the necessary documentation. Your credit will be checked and your finances will be evaluated to determine whether or not you get approved for your mortgage.
Step Three – Appraisals, Surveys, and More Paperwork
After you have submitted your application, your lender will order a property appraisal and survey and request any additional documentation or verifications that were not taken care of when you first applied for your mortgage.
Step Four – Processing
During this part of the mortgage process, the processor will review your application, your credit report and other documentation that you have provided to verify your employment income, debts and assets. The processor will also review the property appraisal and survey. All of this information, along with your mortgage loan information, will be combined into one package that will then be sent to underwriting.
Step Five – Underwriting
The underwriter will then review the entire package and evaluate whether or not the package is acceptable. The underwriter is also responsible for submitting the loan to a mortgage insurer in the event that the borrower is putting down less than 20% of the value of the loan.
Step Six – Closing Prep
Once the underwriting has been completed, all final requirements are met, insurance is ordered and a closing date is scheduled.
Step Seven – Closing
At closing, your loan will be fully funded and the funds will then be distributed to the proper parties. Once all final paperwork is signed, the borrower officially becomes the new owner of the home.
Whether you have questions about the different steps in the mortgage process or would like to get pre-approved for your mortgage, give me a call today!