Step 1: Pre-Qualification / Pre-Approval
We will need to gather information about your income and debts and figure out how much you can afford to borrow. There are many different programs available, which can result in different pre-qualification loan amounts. We'll help you pick the ones that best fit your situation. We can also order a credit report and run your home loan through an automated underwriting system.
**You will have to submit paystubs, bank statements, tax returns, ID, etc. You will then be issued a pre-approval letter/DU approval once pre-approved. *You will need a pre-approval letter to be able to meet an agent to view and submit offers on any homes of your choice.
Choose a loan program and we prepare a formal loan application. The processor may request additional updated or necessary documents if needed. You may do this via email, fax or mail if you're too distant from our office.
Step 3: Processing
We review your credit reports and verify your debts and payment histories. If there are late payments, collections or judgments or other concerns, we get a written explanation letters from you for the underwriter. Employment, assets and other documentation are also verified. Finally title and homeowner's insurance is ordered for a complete package to go to underwriting.
Step 4: Underwriting
Underwriting is where we make sure your home loan package meets all lender requirements for first time home buyers. Therefore, at this point we have usually gathered all the information we need. However, we may require additional information and will contact you quickly to make sure approval happens on time.
Mortgage Insurance Underwriting
Do you have less than 20% down? If so, all lenders require Private Mortgage Insurance (PMI) to insure the loan in case of a default. You can pay your PMI upfront, pay it monthly or finance it in with your loan. After a few years, you may be able to eliminate PMI if your home goes up in value resulting in 20% equity (We provide future refinances at a discount and wholesale rates). Your refinance may or may not require a new property appraisal.
Step 5: Closing
You sign your loan documents after your final loan approval. A mobile notary will notarize the loan documents at an escrow company, in your own home or a location of your choice. The bank will set up funding once you wire your closing funds to escrow per wiring instructions and the signed documents are returned to the bank. The title company/escrow company will set up the recording of your grant deed after funding. Once your loan has funded and recorded you will receive the keys to your home.