The Mortgage Process

The first step is to apply for a loan. You will complete an online application that will take you step-by-step through each question. The application includes personal, financial and employment information along with the loan type, loan purpose and specific loan amount you're looking for. 

Along with the application, it's also required to provide documentation to verify your information. Required documentation includes:

• 30-days most recent paystubs
• 2 most recent years of W2's
• 2 months of bank statements
• If you currently own a home - most recent mortgage statement, homeowner's insurance declaration page, and summer and winter tax bills for the most recent year. 

Additional documentation may be needed if you are a self-employed borrower, receive other sources of income or are obligated to pay monthly debts not included on your credit report. If necessary, we will provide further clarification for the additional documents needed. 

Once you submit the application and provide all required documentation, your loan application is complete! We will then follow up with you to schedule a consultation with Linus. 

A consultation is a key part of the mortgage process. It allows Linus to go in depth with you about your application and answer any questions you have. It can be a face-to-face meeting or a zoom call. We understand how busy life can get and if you can't meet in person, we will ensure you get to experience it virtually! 

A few key points discussed during the consultation:

• What you are qualified for (purchase price, down payment, loan type, etc.)
• Total monthly payment
• Total closing costs
• Overall financial and personal goals

The purpose of a consultation is to create a game plan that supports your personal, financial and mortgage needs. With Linus' expertise and experience in the mortgage industry, he will help guide you to success!

Congrats! You're Pre-Approved!

With a submitted application, all required documentation and a successful consultation with Linus, you are officially pre-approved. We will send a copy of your pre-approval letter to both you and your realtor. 

Obtaining a pre-approval before you start house hunting allows you to specify your search to price ranges you know you can afford. A pre-approval also puts you in a strong position when negotiating with a seller because it shows your creditworthiness and ability to acquire a mortgage loan. Lastly, a pre-approval allows us to gather all the required information and documentation up front. As a result, this will help us close your loan quickly and efficiently. 

Once you have a fully executed purchase agreement, we will start the loan approval process. Loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property.

Your loan processor will verify all of the information you provided during the pre-approval process. If any discrepancies are found, our team will work hard to find solutions for them. The information includes the following:

Income/Employment Check

Is your income sufficient to cover monthly payments?  Industry guidelines are used to evaluate your income and your monthly debts.

 

Credit Check

What is your ability to repay debts when they're due?  Your credit report is reviewed to determine the type and terms of previous loans. Any lapses or delays in payment are considered and must be explained.

 

Asset Evaluation

Do you have the funds necessary to make the down payment and cover the total closing costs? 

 

Property Appraisal

Is there sufficient value in the property? An appraisal will be ordered to determine the property's market value. Location and zoning play a part in the evaluation.

 

Other Documentation

In some cases, additional documentation might be required before making a final determination regarding your loan approval.

Here are some key factors to keep in mind during the loan approval:

• Complete your loan application accurately.
• Respond promptly to any requests for additional documentation, especially if your rate is locked or if your loan is set to close by a specific date.
• Do not move money into or out of your bank accounts without having a paper trail. If you're receiving a gift, we will advise you on what's needed.  
• Do not make any major purchases until your loan is closed. Purchases can cause your debts to increase and might have an adverse affect on your application. 
• Try to avoid going out of town around your loan's closing date. If you plan to be out of town, it'd be a great idea to put a Power of Attorney in place. 

The loan processor will be in constant communication with you about where your loan is at, what additional documents are needed and help answer any questions you have. 

Congrats! You've made it to the closing table!

After your loan is approved, you are ready to sign the final loan documents. You should review the documents prior to signing them and confirm everything looks accurate. You should also verify the name and address on the loan documents are correct.

There are several fees associated with obtaining a mortgage and transferring property ownership that you are responsible to pay at closing. If required, bring a cashiers check for the down payment and closing costs because personal checks are usually not accepted. You will also need to show your homeowner's insurance policy, and any other requirement documents such as flood insurance and proof of payment.

Your homeownership journey starts now! As always, our team is here to help answer any questions you have at any time. We look forward to being your mortgage broker for life!