How Does the Mortgage Process Work?
There are six distinct stages of the loan approval process:
THE PRE APPROVAL – The lender or your mortgage loan officer, determines whether or not you’re qualified for financing. This first step of the pre-approval process involves checking your credit, as well as your assets and income. Other fundamental things are examined as well, to determine qualification.
HOUSE SHOPPING – Now that you have secured your pre-approval letter for a mortgage, you can start shopping. You should work with a buyer’s agent to help you find a home of your choice, within the loan amount that you are qualified for. After finding the right house, make an offer. If your offer is accepted, Agree upon and sign the residential contract.
MORTGAGE LOAN APPLICATION – During the mortgage loan application phase, your loan officer will interview you and make sure that all items about your income, assets, and background are accurate. He or she will also collect a copy of your identification. The assets, income and any other supporting documents will be sent to underwriting after you review and sign the loan application documents.
APPRAISAL ORDER – The appraisal is ordered by someone on your loan officer’s team or the loan officer after you have signed your loan documents. The appraisal is done by an independent third party appraisal company. Upon completion, a copy of the appraisal is sent to the underwriter assigned to your loan in the process. You will also receive a copy of this appraisal report.
UNDERWRITING – underwriters closely check the loan documents collected from your loan officer. Underwriters check for accuracy, and truthfulness of employment, assets, and income. This is what’s considered the validation stage. The underwriter’s job is to validate the accuracy of what was collected by the loan officer, from the buyer. Underwriters will ask for additional documentation during this stage. This is not unusual, and should always be provided to complete the underwriting process for a clear to close your loan.
CLOSING – The closing part of your mortgage process is generally what most involved in the mortgage process want to hear. This part of the transaction means that all of the items provided to the underwriter, along with the appraisal was found to be satisfactory. This is when the final loan documents are prepared by the lender’s closing department and the settlement agent. Closing is when you sign a deed of trust, promissory notes amongst other documents. Closing is when the property is conveyed to you. Closing is when you get a copy of the keys to your new home.
When Do I Begin the Mortgage Process?
The mortgage process should precede the house shopping. You should begin to look for a mortgage before you start searching for your new home.
Why Should I Work With A Licensed Mortgage Broker?
- Mortgage brokers help in finding solutions to challenging situations
- Most have you access to many lenders
- Service is of no cost to you
- Governing bodies control the mortgage brokerage industry
- Mortgage brokers have a better understanding of available mortgage products
Mortgage Biz of Florida
Our loan officers have an incredible relationship with our lending partners. This means that we are capable of finding the right product for your lifestyle. Our loan officers ensure that our clients are offered, and understand all the viable mortgage financing options. Let us assist you in finding the right program for your home loan in south Florida.