The Mortgage Process
The Typical Mortgage Process
The mortgage process can vary slightly depending on the lender and the specific circumstances of the borrower, but here's a typical outline of the steps involved:
- Pre-Approval: Before you start house hunting, it's a good idea to get pre-approved for a mortgage. This involves submitting an application to a lender along with documentation of your income, assets, and debts. The lender will review your information and give you a pre-approval letter indicating how much they're willing to lend you.
- House Hunting: Armed with your pre-approval, you can start looking for a home within your budget. Real estate agents can be helpful in this process, as they can help you find listings that meet your criteria and negotiate with sellers.
- Making an Offer: Once you find a home you like, you'll make an offer to the seller. If the seller accepts your offer, you'll sign a purchase agreement and provide an earnest money deposit, which is typically around 1-3% of the purchase price.
- Formal Mortgage Application: After your offer is accepted, you'll submit a formal mortgage application to your lender. You'll need to provide more detailed financial information and documentation at this stage.
- Appraisal: The lender will order an appraisal of the property to determine its value. This is to ensure that the property is worth the amount you're borrowing.
- Underwriting: Once the appraisal comes back and your application is complete, the lender will send your file to an underwriter for review. The underwriter will make sure you meet all the lender's guidelines and assess the risk of lending to you.
- Loan Approval: If the underwriter is satisfied with your application, they'll approve your loan, subject to any conditions that need to be met before closing.
- Closing: Once your loan is approved, you'll schedule a closing date. At the closing, you'll sign all the necessary paperwork to finalize the purchase of the home and take ownership. This typically includes signing the mortgage note, the deed, and various other documents. You'll also pay closing costs, which can include fees for the loan origination, appraisal, title search, and other services.
- Funding: After the closing, the lender will fund your loan, meaning they'll transfer the money to the seller, and you'll officially become the owner of the home.
- Repayment: Finally, you'll begin making regular mortgage payments according to the terms of your loan agreement.
Throughout the process, it's important to stay in communication with your lender and provide any additional documentation or information they request promptly to keep the process moving smoothly.
Application Documents Needed
Additional Information
When applying for a mortgage, you'll typically need to provide various documents to the lender to verify your financial situation and ensure you meet their requirements. While the specific documents required can vary depending on the lender and your individual circumstances, here's a list of common documents you may need:
1. Identification Documents:
- Valid government-issued photo ID (such as a driver's license or passport).
2. Proof of Income:
- Pay stubs: Typically covering the most recent 30 days.
- W-2 forms: Usually for the past two years.
- Tax returns: Typically for the past two years, including all schedules if you're self-employed or have additional sources of income.
- If you're self-employed: Profit and loss statements, business tax returns, and possibly a letter from your accountant.
3. Proof of Assets:
- Bank statements: Typically for the past two to three months for all accounts (checking, savings, investment, retirement).
- Gift letters: If any part of your down payment or closing costs is coming from a gift, you may need a signed letter from the donor confirming that the funds are a gift and not a loan.
- Gift letters: If any part of your down payment or closing costs is coming from a gift, you may need a signed letter from the donor confirming that the funds are a gift and not a loan.
4. Employment Verification:
- Employment verification letter: This may be required by some lenders, especially if there are discrepancies in your employment history.
- Contact information for your employer.
5. Debt and Credit Information:
- List of debts: Including credit cards, student loans, auto loans, and any other outstanding debts.
- Credit report: The lender will typically pull your credit report themselves, but they may ask for authorization to do so.
6. Other Documents:
- Rental history: If you're currently renting, you may need to provide documentation of your rental history, such as canceled rent checks or a letter from your landlord.
- Divorce decree or separation agreement: If you're divorced or separated and paying or receiving alimony or child support, you may need to provide documentation of these payments.
- Explanation letters: If there are any unusual or potentially problematic aspects of your financial situation (such as large deposits into your bank account or gaps in employment), you may need to provide a written explanation.
It's essential to check with your lender to confirm exactly which documents they require, as requirements can vary. Providing all requested documentation promptly and accurately can help streamline the mortgage application process.
Purchase or Refinance
As a Mortgage Broker, we can shop across multiple lenders to ensure we have the best product and pricing for you. Purchase or Refinance, we are prepared to earn your business by giving you the best Mortgage experience in the industry.
Our Products
- First Time Home Buyers
- Low Down Payment Options
- Conforming Loans
- Conventional, FHA, VA, USDA
- Non-Conforming Loan Options
- Fixed Rates
- Adjustable Rates
- Jumbo Loans
- Terms From 8 Years to 30 Years
- Rehabilitation Loans
- Construction Loans
- Debt Consolidation Loans
- HELOCs
- Debt-Service Coverage Ratio (DSCR)
- Bank Statement Loans
- Renovation Loans
- Down Payment Assistance
Mortgage Pre-Approval Securing all of your mortgage needs!
Find out how much you can afford for your home purchase
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Home buyers
Show real estate agents and sellers you are serious about buying by coming prepared with a mortgage pre-approval. It lets your real estate agent know exactly what price range you are eligible to buy your next property.
Thinking about buying your first property?
Purchasing a first home is a major milestone in life but the mortgage process can feel a little bit overwhelming. The paperwork, requirements and fees can be complex and confusing, particularly the first time you deal with them. We are here to help.
Once you've decided that you are ready, both financially and mentally, to take on the responsibility of homeownership, then the the next steps are to examine and evaluate each of the loan options available so you’re sure to get the best rates and terms possible. With a little bit of patience, you’ll be well on your way to a happy home buying experience.
INVESTORS
We can help in your search for your next investment property. Our team can help you find exactly what you are looking for with the highest return on your investment. CALL US NOW to see how we can help!
Mortgage Refinancing
There are many reasons people refinance their mortgage but the most common ones are to save money on their monthly bill or over the life of their loan. That said, some people also take advantage of refinancing to shorten the length of their mortgage or to get some of their equity out of their home to cover other expenses.
Regardless of why you’re thinking about refinancing, it’s important to weigh all your options and come up with a strategy that makes sense for your personal financial goals.
Call or email us today for full details.
Self employment Financing
Low rates and excellent options for self-employed individuals looking to get mortgage financing.
When it comes to mortgages, it hasn't always paid to be self-employed namely because reducing your taxable income can make it difficult to qualify for the mortgage you deserve.
We work with lenders that offer excellent mortgage options for self-employed Americans. These lenders understand that self-employed individuals have tax write-offs creating significant reductions in their declared income. With these mortgage lenders, you will not be required to prove your income and a reasonable estimate of your annual income will be acceptable.
Home Improvement Loans
Whether you're planning a major home renovation or a small project, we offer financing options to help meet all your home improvement needs. There's never been a better time to access the extra funds that can help bring your home to that next level of comfort.
Making improvements on a property is a great way to increase its value, to make it a more enjoyable place to live and potentially save more money on energy bills. Whether you’re buying a fixer-upper home or you’re dreaming of new windows, a new kitchen or expanding the master suite in your current home, we have the expertise to help you get the job done.
Call or email today for full details and a FAST mortgage pre-approval!
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Why pay high-interest rates on your bank's credit card debt when you can add that debt to your mortgage and pay a much lower interest rate! One important part of a strategy is knowing "good debt" from "bad debt". A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way.
- Consolidate high-interest rate credit cards to one lower rate.
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If you want to reduce your debt, contact us today to review your options.