Getting a mortgage loan can be a time-consuming and stressful process. If you understand what to expect, the process is easier to deal with. While you may know where your funding is coming from and how much loan you can get, the full process of getting a mortgage isn’t completed until after you find a home to make an offer on.
Once an offer is accepted by the seller, the steps towards getting your mortgage loan kick into high gear as part of the closing process. The following six steps break out the overall process, so you’ll know what to expect.
1. Financial Pre-Approval – This is key to making the home buying process a great one; when you know what you qualify for, you can focus on properties within your price range.
Application & Interview – This can take some time, as part of the interview process is for you to find a mortgage lender you want to work with as much as it’s about finding one which will loan you money.
Buyer provides pertinent documentation, including verification of employment – Get a list of all needed documents from the mortgage lender and bring everything with you when completing the application. This will save a lot of time.
Credit report id requested – This is standard for all types of loans. Be sure your credit score is a good one, and clear up any errors or issues on your credit report before seeking a mortgage.
Appraisal scheduled for current home owned, if any – If you’re selling at the same time as buying, the potential funds from the sale of your home could help you get a better mortgage offer.
2. Home Search Process Occurs – This is the fun part of buying a home. Once you know what you qualify for, the search begins.
3. Underwriting – A mortgage loan is not underwritten until there’s a property to go with it. When you find the home you want, you make an offer, and if it’s accepted by the seller, the mortgage lender can process the loan. This begins with underwriting, or the process of reviewing data and agreeing to take on the risk of the loan.
Loan Package is submitted to underwriter for approval – If you’ve been pre-qualified for your loan amount, this process won’t take as long.
4. Loan Approval- Once the loan is approved, there are action steps to be taken by all parties involved in the sale of the property.
Parties are notified of approval.
Loan documents are completed and sent to title company.
5. Funding – This is the last step before the keys are given and the house is now your home.
Lender reviews the loan process- this is a chance to make sure all documentation is in order and everything has been completed correctly.
Funds are transferred by wire – The lender handles this directly. If the mortgage loan is greater than the price of the house, you will receive these funds. The rest will go to the seller and their agent as agreed upon.
When you’re ready to buy or sell a home in the Washington DC Market, you want a Realtor® you can trust, whose experience will help you buy or sell property with confidence. Jared Associates stand ready to help you achieve your home dreams. Contact me, Jared Russell, at 301-351-7711 (mobile), 240-383-1350 (office), or email me at firstname.lastname@example.org. You can also visit me at my website for additional information.