Updated: Feb 13, 2021
The mortgage process can be a mystery to many, but we are here to simplify that for you. Below are the 7 steps in the mortgage process and some resources to help you navigate the coming days and weeks ahead.
Step 1 Application Process
Your personal information will be collected and will include your full name, current address, birth date, employment information and information on your current assets and liabilities.
Step 2 Credit Review
We will review your credit bureau report and will inform you of your credit status. If there are items on the report that are incorrect, or items that need to be cleared up, then you should take care of them immediately. If this is not possible, talk to me about the steps to take to correct the situation.
Step 3 Documents Collected
This part can feel tedious as some lenders need everything but a DNA sample!! JK on the sample, but it is important to have all supporting documents, including income and down payment verification for approval. We can help with some of the collection of your documents to make the process easier for you.
Step 4 Pre-Approval Complete
Once the application and credit report have been submitted to determine the amount of mortgage for which you qualify, we will submit your file for pre-approval. Your getting warmer and pre-approval can come quickly so with this hot market it’s time to start looking with your realtor for a property.
Step 5 Insurer Approval/Appraisal
Once you find a property, if your mortgage is a high-ratio mortgage (over 80% LTV) and requires insurance, your lender will submit the application (along with the property information) for approval of both you and the property. If your mortgage is conventional (under 80% LTV) and does not need mortgage insurance, your lender may require an appraisal to ensure the lending value of the property meets their approval.
Step 6 Meeting Final Conditions
Once your mortgage has been approved by both the lender and, if applicable, the insurer, it is time to make sure that you have satisfied all of the lender’s conditions on the approval. This may include recent pay stubs, gift letters to support a down payment, your lawyer’s contact information or any outstanding legal forms that need to be signed.
Step 7 Finalize The Deal
Once we have final approval, you will need to sign the lender mortgage documents, including creditor life insurance and/or term life insurance. We can help arrange for your home and fire insurance. Make sure you review the information that will include the amortization period, schedule of your payments, annual interest rate, your prepayment privileges, the mortgage term and other related fees. The last step is to sign your legal mortgage documents in the presence of your lawyer.
Congratulations! You’ve purchased your home! Your home is an important milestone in your life. Being a homeowner offers many benefits including a place to plant some roots, a source of pride, a financial investment and the ability to make your own improvements. As mortgage professionals we are always excited to help through this process and beyond. We will be here to offer ongoing support after closing is complete and offer advice on any future mortgage or referral needs. Your best mortgage for your best life!
Access the full Home Buyers Guide here.