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