Please read our Home Buyer Guide if you are plan to purchase your first home. Once you have an accepted offer, you should immediately contact us for mortgage loan process. The loan process can seem daunting, especially if you’re a first-time home buyer. But you don’t have to go it alone. We will be your guides throughout the entire mortgage process. Still, knowing what steps you need to take can help the process go more smoothly.
- Loan application. The mortgage process begins with you filling out a full loan application and provide support documents relating to your income, debts and assets.
- Loan Processor prepares files for underwriting. Once your full loan application has been submitted, for you, the buyer, this is mostly a waiting period. But if you’re curious, here’s what happens behind the scenes: we will order all necessary credit reports, verify employment, bank deposits and payment histories. Request a written explanation on any credit issues, such as late payments, collections, and/or judgments. Once our processor put together a complete package with all verifications and documentation, the file will be sent to the underwriter
- Underwriting: the underwriter will review your information in detail. Review will focus on these three areas:
- Capacity: Will your income and current debt load allow you to make the loan’s payments each month?
- Credit: Does your credit history show that you pay debts on time?
- Collateral: Is the value of the property you’re buying sufficient collateral for the loan? (In other words: Did the appraisal show the purchase price and home value are aligned?)
- Subject Home appraisal: Lender will order a home appraisal to ensure that the value of the home you’re buying is in line with the purchase price. The appraiser will visit the home and compare it to other recently sold homes in a similar price range. Lender will also order a title search to make sure there are no outstanding liens on the property
- Be responsive to underwriter conditions: Most of times, you will receive conditional approval notice within 48 hrs. At this stage, underwriter may require additional documentation. Respond ASAP to any requests during this period to make sure underwriting goes as smoothly and quickly as possible
- Purchase homeowner’s insurance:Lender will require proof of insurance before the loan can receive final approval. you also can only get declaration page and invoice, and pay it at closing.
- Avoid taking on new debt:While your loan is in process, avoid opening new credit cards or making other major financial changes. New loans or other changes that affect your debt-to-income ratio could get in the way of your mortgage approval.
- Lock in your rate: If you haven’t already locked in your interest rate with your lender, you’ll want to do so. Your rate must be locked in no later than 10 days prior to your closing date.
- Review your documents:Once your loan is approved and your inspection, appraisal and title search are complete, your lender will set a closing date and let you know exactly how much money you’ll need to bring to your closing.
- Arrange to pay your down payment and closing costs:You’ll need to get a cashier’s check or arrange to wire money to cover your down payment and closing costs
- Close on your home: At the closing, be sure to read all the documents you receive and ask any questions you may have about the terms of the agreement.
Then, after you’ve signed everything, you are ready for celebration of your new home!