Below is a brief outline of the mortgage process for
purchasing a home so you are familiar with the pre-qualification
and application process. The first step of the loan
process is contacting your dedicated account manager,
Audra DeFazio, to discuss your preapproval. You can
fill out the free preapproval application on line (APPLY
NOW) to facilitate
the process or call toll free at 877-848-9865, extension
389.
STEP 1- PRE-QUALIFICATION – Apply for your loan
The pre-qualification process should be performed before
you go home shopping. This will let you know how much
home you can afford and what to expect to pay for a
mortgage. Plus, a pre-qualification will tell you how
much money you will need for the down payment. Most
importantly, it gives you leverage when shopping for
your home. By presenting the pre-qualification letter
to your realtor, you have more buying power and can
more quickly negotiate a deal with a seller. The pre-qualification
can be done via on line (APPLY NOW) or over the telephone
and only takes a few minutes.
A pre-qualification is not a loan guarantee, it is
simply letting you know that your income is sufficient
to carry a certain mortgage payment. We also offer no
income loans so please inquire with Audra for details
on the different programs. When you fill out the Uniform
Residential Loan Application, disclosures and checklist
and submit your loan package you are applying for the
mortgage and will receive an approval and commitment.
STEP 2- PRE-APPROVAL – Submit the application
for review
The pre-approval process is much more complete than
pre-qualification. For pre-qualification, Audra asks
you a few questions and provides you with a pre-qual
letter. Pre-approval includes all the steps of a full
approval, except for the appraisal and title search.
Pre-approval can put you in a better negotiating position,
much like a cash buyer.
STEP 3- THE APPLICATION PROCESS– Documentation
is reviewed
Processing
Once you have completed the application, provided the
proper documentation and signed the disclosures, you
will receive your approval and your loan will be submitted
to our processing department. We take care of the next
step which covers verifications to setting up the closing
with the closing agent. Once your loan is submitted
into processing, you will receive the good faith estimate
and the truth in lending statement via mail. Our processing
department will perform all verifications on the loans
and see your loan thru to the end with your dedicated
mortgage consultant.
Credit
During the processing of your loan, we will verify all
information on your application, including employment,
assets, liabilities, etc. We will order a tri-merge
credit report on your current credit status and past
credit history, including monthly payments, current
balances and payment history.
Appraisal
We will arrange for an appraisal by a licensed real
estate appraiser on the property being purchased or
refinanced. The appraisal determines the value of the
property and thus its value.
Title Search
The title search is performed by your settlement agent
(attorney or title company) and provides proof to the
lender that the seller owns the property you wish to
purchase in order to get a loan. The title search involves
reviewing public records in local government offices,
including recorders of deeds, county courts, tax assessors
and surveyors. Records of deaths, divorces, court judgments,
liens and contests over wills (all of which can affect
ownership rights) must also be examined. In turn, you
will be provided with title insurance which protects
you and the lender in case of an unresolved claim affecting
the marketable title to the property.
Homeowners Insurance Verification
The processing staff will contact the company you chose
for your homeowners insurance to verify the coverage
on your home and that your insurance is paid. Please
give your homeowners insurance information to your dedicated
account manager well before your closing.
STEP 4- UNDERWRITING – Conditions are met
Underwriting
After all information on your application is provided
and verified, the application goes to underwriting to
assess the risk. An underwriter looks at four major
factors: employment/income, assets, credit history,
and value of the home. Based on the underwriter’s
findings, we will either request additional documentation,
re-evaluate the loan program or clear your loan for
closing.
STEP 5- FINAL DECISION
Your dedicated account manager will contact you to discuss
the final findings, go over if any conditions are needed
on the loan and guide you on the scheduling of your
loan.
STEP 6- CLOSING
The final step is the closing (settlement) where you
meet and take official ownership of the house. You’ll
be required to sign many papers and pay your closing
costs at the meeting in order to take possession of
your new home. Then you receive the keys to your new
home!
A few of the key closing documents you receive include
the 1) HUD-1 Settlement Sheet- Itemizes the services
provided and the charges to the buyer and the seller.
Your closing agent will provide you with this sheet
to review prior to closing so you know your costs in
advance and they will instruct you on the amount of
cashiers check to bring to the closing.2) Deed of Trust
or Mortgage-Documents conveying a lien on your property
as security for repayment of your home loan. 3) The
Note-The mortgage note (also know as promissory note)
is a legal "IOU." The note represents your
promise to pay the lender according to the agreed terms.
Congratulations, you are officially a homeowner. We
wish you all the best in your new home and look forward
to being your mortgage provider for all your future
mortgage needs.
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