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Home Buying Process
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Home Buying Process

Answers To Your Frequently Asked Questions

Buying a home is one of the most important decisions you will make in your lifetime. As such, you’re going to want to have as much information as possible before you decide to go through the process of getting a mortgage. We’re here to help you along the path to making an informed decision about your loan.

Below you will find the tips that will take you through the entire loan process, from beginning to end. We’ll tell you what materials you need, where to get them, and who to give them to. With our help, you will be well on your way to buying your first home!

Step 1 – Online Application and Pre-Qualification
The first step in the process is to complete an online application. This takes about 20 minutes and is free. Our Automated Underwriting System will review the information you submitted, run your credit report, and issue an online Pre-Qualification Letter.

Step 2 – Supporting Documentation
Upon receipt of your online application, your assigned Loan Officer will contact you with a list of supporting documentation needed to obtain a pre-approval. Below is a list of the documents you may be asked to provide:

  • Pay stubs for the past 30 days.
  • W-2 forms for the past two years.
  • Bank statements or other documentation to verify where the down payment and closing costs will be coming from.
  • If self-employed or owner of rental properties, prior two years’ tax returns.

Step 3 – Pre-Approval
Your assigned processor will review your supporting documentation and calculate your monthly income and other key data. Our in-house underwriting department will then review the file to make sure the loan meets the program guidelines and that you qualify based on the ‘4 C’s of Credit’: Collateral, Capacity, Credit and Capital. The underwriter will prepare a list of conditions that the approval is subject to. Common conditions to expect are:

  • Fully-executed purchase contract
  • Appraisal supporting value of property
  • Satisfactory title report

Your assigned Loan Officer will then issue a Pre-Approval Letter to attach to your offers. A Pre-Approval Letter from a direct lender is the strongest possible evidence of a home buyer’s ability to obtain a mortgage and greatly strengthens your offer. It also allows us to close your loan in as few as 21 days from your contract date giving you added bargaining power.

Step 4 – Final Approval
Once you have made an offer and it has been accepted by the seller, additional documents are obtained to complete your loan file, including:

  • Appraisal supporting property value
  • Preliminary title report
  • Any remaining conditions from pre-approval

Upon receipt of these documents, the underwriter reviews the file and issues a final approval.

Step 5 – Loan Docs
Upon receipt of final underwriter approval, we draw your loan documents and submit them to the closing agent.

mortgage-pre-approval

Step 6 – Closing
The closing agent coordinates all of the documents that need to be reviewed and signed. The seller will execute the deed to the property, funds will be collected and disbursed, and the closing agent will record the necessary instruments to give you legal ownership of the property. When all is signed and the transfer of funds is complete, you receive the keys to your new home.

Closing Documents:

  • Deed
    The Deed is an important mortgage closing document that transfers the title of real property from the seller to the buyer. The deed includes a detailed description of the property being transferred, and must be signed according to the state laws where the property is located. The deed is mailed to the buyer after the mortgage closing agent officially records the deed at the local government office.
  • Mortgage or Deed of Trust
    This is the “security instrument” which gives the lender a claim against your house if you fail to live up to the terms of the mortgage note. It recites the legal rights and obligations of both you and the lender and gives the lender the right to take the property by foreclosure if you default on the loan. The mortgage or deed of trust will be recorded, providing public notice of the lender’s claim (lien) on the property.
  • Note
    This is the written agreement signed by the borrower at closing that contains the promise to repay the loan. The Note also contains the terms of the loan, such as loan amount, interest rate, monthly payment and term.
  • Initial Escrow Statement
    The Initial Escrow Statement lists the estimated property taxes, homeowners insurance premiums, and other expenses to be paid from the escrow account during the first 12 months of the loan. This mortgage closing document establishes the escrow payment amount, as well as any extra funds required to be used as a cushion.
  • Mortgage Servicing Disclosure Statement
    Discloses to the borrower whether the lender intends to service the loan or transfer it to another lender.