THE MORTGAGE LOAN PROCESS
- Application interview
- Lender obtains all pertinent documentation
LENDER PRODUCES PRE-APPROVAL LETTER
WAIT FOR BUYER’S ACCEPTED CONTRACT
- Verifications of employment, bank records, proof of funds in accounts, etc.
ORDER INDEPENDENT APPRAISAL OF PROPERTY (THIS PROTECTS LENDER AND BUYER)
- If at or above purchase price - proceed
- If below purchase price: 1) seller reduces price, 2) buyer brings more cash, or 3) the deal is cancelled
- The loan package is assembled and submitted to the underwriter for approval.
- Supporting documents come in.
- Lender checks on any problems.
- Request for any additional items are made.
DOCUMENTS ARE DRAWN
- Loan documents are completed & sent to title company.
- Lender reviews the loan package.
- Funds are transferred to title company for transfer to seller at closing.
Important Note: Don't finance any major purchases that might affect your creditworthiness between pre-approval and the closing of your home! Also, don't move substantial money among accounts without consulting lender. This can delay closing!