Before you start shopping for your property, you will need to go through the mortgage loan application process so that you know how much you can afford.
A Brief Guide To Obtaining A Loan To Purchase Your Home
Step 1: Application
- Complete a loan application in person, by phone or via the internet.
- Application reviewed to match you with desired loan program.
- Credit report ordered and reviewed.
- Pre-Qualification Letter may be issued at this time.
Step 2: Initial Underwriting
- File forwarded to lender for initial underwriting.
- Underwriter determines what is needed to support your application (e.g. bank statements, tax returns, appraisal).
- Conditional Loan Approval issued at this time.
Step 3: Processing
- Loan officer and processor gather information requested by underwriter.
- Preliminary title report requested and home appraisal and inspection may be completed.
- Loan officer may request additional information from you at this time.
Step 4: Final Underwriting
- Lender evaluates your file again with all of the supporting information.
- Any additional required information is requested.
- Final Approval issued and loan documents drawn.
Step 5: Funding
- Execute closing documents at title company office.
- Deed of Trust recorded at the county recorder’s office.
- Lender releases funds for wire transfer.
- Funds disbursed to the proper recipients.