The mortgage process has a lot of moving parts. The good news is that you don’t have to worry about any of them! The Mortgage Loan Officer is the one who coordinates and oversees the various parts each individual plays to get your loan from pre-approval to the closing table.
This is a breakdown of the Normal Steps:
The A+ Loan Officer will get some information on the phone; obtain your credit report and other information about your income and assets and issue a letter describing your qualification for a home purchase
Formal application with property information
Once you find a property with your Realtor and get an accepted offer, you will meet with your loan officer to start the loan process
The Loan Officer reviews the offer and orders an appraisal from the Appraiser At this time documentation is of income and assets is collected
Processing the loan
The Loan Processor works with the Loan Officer make sure the correct documentation for the borrower has been collected for the type of loan for which they are applying. The Processor may also do a direct verification of employment and amounts on deposit with the borrower’s financial institution.
Underwriting the loan
The Underwriter compares the submitted documentation to the guidelines of Fannie Mae and Freddie Mac and issues a loan approval, most of the time subject to some conditions.
This is the formal acknowledgement that funds have been committed for your loan. If there are conditions, please make sure they will not be a problem to satisfy by reviewing them with your Loan Officer. You will then be asked to sign the Loan Commitment and send it to your Realtor.
Preparing for closing
Any out standing conditions should be satisfied at this time and you should contact your Insurance Agent to obtain Home Owner’s insurance.
- You must purchase a policy and pay for one year in advance
- Next year it will automatically deducted from your escrow account.
- If you have to transfer money from one account to another to consolidate your funds for closing, make sure you allow enough time to do so.
- Funds for closing must be in the form of a cashiers check. They must be on deposit for a certain amount of time, in order for the bank to issue the cashiers check. Make sure you check on the bank’s specific policy.
This is the culmination of the loan process. The funds provided by A+ Mortgage plus your down payment will be transferred to the seller minus and outstanding mortgages the seller owed on the property.
- The title to the property transfers from the seller to you.
- The deed will be recorded with your name to evidence your ownership.
This outline is just an overview of a typical transaction. Of course, there are many potential variations depending on the type of loan and the individual issues you have. You A+ Mortgage professional is your best resource and will walk you through the process every step of the way. Our goal is to make sure you understand and feel comfortable with the process of your loan.