| There is a lot that happens between finding | | | | the loan processing phase, the consultant |
| your dream home and actually moving in. But | | | | gets the file in order with all the necessary |
| to the home buyer, much of that activity | | | | paperwork. The loan file will be passed on |
| happens behind the scenes. It can be a little | | | | next to underwriting. |
| nerve wracking to have so much at stake, | | | | |
| especially when you do not know what is | | | | In the next phase, Underwriting, the mortgage |
| happening with your loan. | | | | application is scrutinized to see if the loan |
| | | | would be a good risk to the lender. The loan |
| In the mortgage industry, there are some | | | | application is reviewed in terms of the |
| common terms for the mortgage process. You | | | | borrower, the property, and any conditions |
| may find these terms unfamiliar. Rather than | | | | attached to the property. All must be |
| just wondering what these terms mean, and | | | | consistent with the lender, and the specific |
| more importantly, what they entail, we will | | | | mortgage programs, standards. It is in this |
| help you negotiate the mortgage process | | | | stage that the decision to approve the |
| through its lifecycle. | | | | mortgage is made and in this stage an |
| | | | approval and commitment letter is issued. |
| The first step of the process is the | | | | |
| Application. In this phase there are several | | | | You are almost at the end of the mortgage |
| things that happen. The mortgage consultant | | | | process. The next to last stage is Loan |
| takes basic information needed for granting a | | | | Closing. In this stage the loan closer |
| loan from you. The consultant also works with | | | | contacts the title company to make sure the |
| you to find the appropriate loan program. In | | | | property can be sold as is. At this phase, |
| this phase, you will receive all the details | | | | you will have to provide proof of proper |
| of the mortgage program including the costs | | | | insurance. All the files are double checked |
| and expenses. This is referred to as a Good | | | | for accuracy, and any disclosures are |
| Faith Estimate. During this phase, many | | | | provided to you. At this point, you sign off |
| consultants will run a cursory credit check | | | | on all the documents (and there are a lot) |
| to see your ability to repay the loan, this | | | | and the loan is disbursed to you (you are |
| process is called pre-qualification. | | | | responsible for repayment) and the money is |
| | | | transferred to the seller to complete the |
| The next step in the process is Loan | | | | legal conditions of the sale. The mortgage is |
| Processing. With loan processing, the lender | | | | officially recorded in the public record. The |
| collects and verifies the information from | | | | loan will generally be reviewed as part of an |
| the borrower and also the real estate | | | | auditing process to make sure the loan is |
| property. This step involves checking your | | | | complete, but as of now, you own the home. |
| credit history, verifying your employment | | | | |
| history, verifying banking information and | | | | The final stage is called Loan Servicing. |
| details about the property. During this | | | | This refers to the management of repayment of |
| stage, you will provide the mortgage | | | | your loan. The company that services your |
| consultant with lots of paperwork; copies of | | | | loan sends you repayment coupons, tax |
| your pay stubs, bank records, etc. | | | | statements, manages your escrow account, and |
| | | | collects and releases funds for taxes and |
| During this stage, the mortgage company | | | | insurance. The company or lender that |
| verifies all the information, performs ratio | | | | services the loan is who you call if you have |
| analysis, appraisals of the property, etc. In | | | | any questions or concerns. |