Services - Seller / Buyer - Mortgage Process

Services { Mortgage Process }

Understanding the loan process
The steps of a purchase or refinance loan and your responsibilities:

One: Shop for the best lender & loan product for your needs
You will need to:

Determine the monthly payment you can comfortably afford.

Review your credit report.

Determine the value of your home, or of the home you wish to purchase.

Assess the best type of loan for your needs.

Two: Loan Application / Pre-Qualification
You will need to provide:

Social security number

W-2 forms for past two years

Two month’s worth of pay stubs

Bank statements covering last three months

Most recent tax returns

Balance of previous mortgage

Personal financial data (monthly income, current debts & assets)

Employment history

Amount of down payment (for purchase loan)

Personal data (name, phone number, address, D.O.B.)

Assess the best type of loan for your needs.

Three: Lender (Pre) Approval
Your loan officer will let you know if there are any outstanding issues that must be cleared up before you are approved, or if you will need to present any additional documentation.

For a purchase loan, your loan officer will issue a letter of pre-approval that you will be asked to present when making your offer to the home seller.

Four: Appraisal
Your loan officer will arrange for a professional appraisal of your property, or of the property you wish to purchase.

Five: Title Search & Commitment
You’ll need to provide information to obtain payoff of existing mortgages.

The title company will tell you if there are any other outstanding liens against the property that must be cleared up before the loan can be issued.

Six: Homeowner's Insurance
You’ll need to provide proof of homeowner’s insurance in order to finalize your home/refinance loan. Your insurance must cover the full cost of building/rebuilding your home.

Seven: Title Insurance
Most lenders will require you to purchase a Loan Policy for your mortgage, to protect their investment in your property. A policy for the homeowner will also be available to you, which will protect your investment in the property. This policy is not always required; however, the low cost of the policy vs. the protection it offers makes it advantageous to you. Therefore, be sure to inquire about your Owner’s Title Policy. (For purchase loans, it varies by area whether the seller or buyer is responsible for the cost of the policy.)

Eight: Closing & Settlement
The closing is the final step of your loan process. During the closing:

You will review and sign all documents

Fees will be paid and reviewed on legal form

Documents will be officially recorded by title agent

You will receive any cash-out if applicable

You will need to bring:

A valid ID

Cashier’s check or money order for any funds you owe

Download a checklist of steps in the mortgage process.