Pre-approval is a preliminary assessment conducted by a loan professional. This step we collect all initial documentation from the buyer to decide which program they will qualify. Also, it’s time to pull the credit score from the buyer. After reviewing all documents and analyzing the credit score report, we can set the maximum loan amount that you can qualify for.
When you are pre-approved, you start looking for your property, once you have found it and you have an offer accepted, you and the seller will sign the purchase contract. On this contract you will have all the terms and conditions that you and your real estate agent need.
When you have the purchase agreement signed, the mortgage company will submit all documents collected and contract to the bank. The bank will generate the Initial Disclosures and send them to the buyer sign.
This is the most important phase of the mortgage, when the underwriter will review everything and ask for additional documentation such as appraisal, home insurance, title information, and others. It’s important to respond promptly to any requests to keep the process moving smoothly.
When every requirement from the bank is satisfied, the underwriter will clear the loan to close.
Also known as the settlement day. The closing typically takes place at a title company’s office,
lawyer’s office or another location designated by the closing agent.
The seller and buyer
will review and sign various documents such as Promissory Note, Mortgage or Deed of Trust,
Closing Disclosures, Title Deed, and others.
Closing day is the final step of the mortgage process.