In this first step, a lender determines a borrower’s ability to qualify for a home loan based on some key information that you submit through an online application. The lender gathers information about your income, your debts, and your credit history. Based on the criteria of the collected information, the lender attempts to match you with a loan program that is suitable to your needs. If a match can be made, the borrower is pre-qualified for a loan, and the lender will begin looking at all of the necessary documentation in order to issue a more official “pre-approval.”

This step usually takes place shortly after you are pre-qualified. Depending on whether you are trying to apply for a home refinance, for a home purchase, or for an investment purchase, the information required is virtually the same. After you complete the online (or paper) mortgage application you will be required to provide all the required documentation. We will give you a comprehensive list of the items needed. That list will include bank statements, pay stubs, W2’s, tax returns, etc. and we will provide you a secure link to upload and submit the necessary documents. The lender issues documents that disclose the loan amount, fees, and the interest rate. At that point you sign the initial loan documents which allow the lender to begin processing the loan. The application is then submitted to loan processing and underwriting can begin.

The loan processor will orders an appraisal, will request home owners insurance, and a preliminary title report. The information on the application, such as bank deposits and employment, are then verified. Once all the verifications have been made and the above orders have been received, the entire mortgage package is then sent to underwriting for final review. The underwriter reviews the loan package to make sure it conforms to all the guidelines required for the loan. They also review the appraisal and title report and may do additional validation of employment and credit history. The underwriter may ask for the borrower to provide additional documentation to support the information in the file. When the underwriter determines that the application is complete and precise, the loan is approved.

Once the loan is approved, a loan closing is scheduled for you to sign the final loan documents. These documents contain the terms of the loan and the official agreement between the borrower and lender. You will provide the down payment at this time in the form of a cashiers check. The closing is facilitated by a licensed title officer. Once the closing has been completed and all documents properly executed, the lender orders the funds for the loan. The money is wired to the seller and the transaction is recorded with the county. The buyer now officially owns the home and is given keys to the property!