Being pre-approved before you start your house hunting process is a smart move in today’s competitive market. A pre-approval will give you confidence in your level of purchasing power and lets the seller know your offer is serious because you have already been pre-underwritten by a mortgage provider.
Begin The Application
In order for your Mortgage Consultant to find you the appropriate product, program and rate be prepared to provide the following for each applicant:
Actions That The Lender Will Take
- Current address and, if known, property address of the home you want to purchase
- Social Security number
- Employer name, address and your position
- Annual income documentation; including paystubs, W-2’s and possibly tax returns
- Bank balances/statement
- Current debt
- Purchase Contract (if property already identified)
Forms You Will Need To Sign
- Pull your credit report and score
- Provide disclosures
- Determine your debt-to-income ratio
- Prepare the Loan Estimate
Preparing For Underwriting
- 4506T - allows lender to pull tax information
- Commitment Letter
- Appraisal Disclosure
- Primary Resident/Occupant of the home you are purchasing
Your loan processor will prepare your mortgage loan documentation for presentation to the underwriter. The loan processor assures all documentation is complete, all numbers are calculated, and the information is assembled in the proper order. They will:
- Order a mortgage appraisal
- Order a review of the home’s title
- Review the requirements of the program or product you have selected
The Processor may ask for additional information during their review. Please provide everything they ask for as quickly as possible as the file will not be submitted to the underwriter until all the documentation is verified.
The mortgage underwriter is trained and authorized to assess if you are eligible for the mortgage loan you are applying for. This person will approve or reject your mortgage loan application based on the requirements of loan investor.
Who Is The Investor On My Mortgage Loan?
This is the entity that is offering the money to back your mortgage and may not ultimately be your lender. Most mortgages in the U.S. are purchased from government entities such as Freddie Mac and Fannie Mae; then offered through lenders such as Results Mortgage.
Ready To Close
Once the application is given final approval, the lender will prepare a Closing Disclosure and provide it to you at least three days prior to closing. If the Closing Disclosure requires changes, a new disclosure is sometimes required and the three-day waiting period will start over. The Closing Disclosure contains the final terms of your loan, as well as the final loan charges that you will pay at closing.
All borrowers named on the loan are typically required to be present at closing. Others may attend including escrow officer, closing agent or attorney and any real estate professionals. You will sign several items at closing including the promissory note, deed of trust, the deed, a number of affidavits and declarations; all of which are legal documents. Be sure to ask any questions of the team of experts at your closing so you fully understand what you are signing.
Mar 25, 2019