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The Mortgage Professional |
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Your first contact should be with a trained mortgage professional whose role is to help you analyze your income and assets, match your finances and homeownership goals with the appropriate loan product, and help you complete the paper work required for your loan application. Your mortgage professional will also "supervise" your mortgage application as it proceeds through the approval process, and is available to answer any questions you may have. |
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The Mortgage Processor |
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Once you have completed your mortgage application and provided some or all of the necessary documentation to your mortgage professional, your file will then be submitted to the mortgage processor. The processor's goal is to get your loan approved quickly. He or she will review the documents in your file to determine your eligibility for mortgage approval. The processor may need to verify some of the information in your file, or may note a missing piece of documentation, or decide that obtaining certain additional information will make loan approval more likely. During this process, the processor will undoubtedly call you and your co-borrower. If you provide a timely response to his or her requests, the process will go faster. |
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The Appraiser |
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If you have already found the home you wish to buy, the lender will order an appraisal, if necessary, as soon as you apply for your mortgage. Some programs do not require an appraisal, and some may require only an external or drive-by appraisal. A professional appraiser will contact you or your real estate agent to set up a visit to the property. Based on the visit and an analysis of comparable properties in the area that have recently sold, the appraiser will determine the market value of the property. |
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The Underwriter |
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Once your mortgage is fully processed, the underwriting stage usually proceeds quickly. Once you are approved, you will receive a commitment letter from the underwriter. The commitment letter contains the terms and conditions (if any) of your mortgage which will need to be satisfied before you close on the property. If you are getting an online loan commitment, the receipt of a satisfactory appraisal will be one of those conditions. |
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The Title Search |
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A title search will be ordered during the loan process from either the title attorney or title company of your choice, or one chosen by your bank if you have no preference.* A title search is a review of public records and the preparation of a report detailing the property's history of ownership. When the search is complete, the attorney will provide a mortgage title insurance policy that protects the lender against losses due to a faulty title. You also have the option of purchasing your own coverage. |
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The Mortgage Closing |
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When all the conditions in your commitment letter have been met and the title search is complete, a date will be set for the closing. You, your real estate agent, the seller and, if customary, your attorneys, will meet at the closing agent's office to complete the sales transaction, which will include the signing of many legal documents and the payment of various funds and fees. Feeling comfortable and informed will help make buying a home and securing your mortgage a smooth process. |
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These steps outline the traditional home buying process. There may also be options available to you that could shorten or eliminate certain steps. Use our free qualification for the ultimate in online lending. |
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