How The Mortgage Process Works
Are you looking to buy a home? Congratulations! Buying a home is one of the biggest financial steps you’ll make, and it’s an exciting (if overwhelming) process. Navigating the mortgage process can be tricky, but the team here at Patriot Home Mortgage is here to help. We’ll help you find the mortgage financing that fits your needs and help you through every step in the process.
In today’s blog post, we’re sharing the general steps in the mortgage loan process. Every loan process, and every property, is unique, so know that there is no one-size-fits-all approach to mortgage lending. However, knowing the general process is helpful and can help things go more smoothly. Continue reading to learn more, and if you’d like to talk with a mortgage expert, contact us in St. George, UT, or Mesquite, NV. We serve clients across the Western United States, and we’d be more than happy to talk with you!
Mortgage pre-approval isn’t necessary, but it sets you up for an easier home buying experience. When you’re viewing houses, a pre-approval lets real estate agents know that you can get a loan and that you’re ready and able to buy. Plus, they don’t take much time, as they involve pulling a credit report that shows your credit score and credit history. Your mortgage company will use this info to tell you what loan amount you qualify for, and this will also help you narrow your house search.
You’ve got your pre-approval in hand, and the next step is house shopping. Shopping online with online real estate portals can be fun and convenient, but know that these listings don’t always show all of the available homes, and a real estate agent may be helpful in your home search process.
Make An Offer
You’ve found a house you love, and now it’s time to make an offer. Your real estate agent will know how to structure your offer, including any contingencies to protect you. After you’ve made an offer and the deal is approved by both parties, you can move forward to finalize the home loan.
You’ll need several documents to get a loan file, and that can be gathered online, over the phone, or in-person with a mortgage consultant. You’ll need things such as W-2s, pension, child support, bank accounts, investments, current mortgages, car loans, and other financial information. Along with your personal information, you’ll need property information such as expected sales price, type of home, annual real estate taxes, HOA dues, and closing dates.
If you are applying for a VA loan — which we specialize in here at Patriot Home Mortgage — you’ll also need proof of your military service. The VA can provide you with a Certificate of Eligibility and we can pull it for you if needed.
After the mortgage application is in, the loan processor will review all of the information in the application and assemble a package for the underwriter.
The underwriter will closely evaluate all of the documentation provided in your application and by the loan process, cross-checking to make sure that you meet the eligibility requirements for the loan you’re applying for (such as verifying military service for a VA loan). Underwriters will review the borrower’s credit history and their capacity to repay the loan, as well as look for red flags or potential fraud.
If everything looks good, the underwriter will approve the loan. They can also choose to approve the loan with conditions, for example, a written explanation for a borrower’s credit history. Then, the interest rate for your loan is locked. Because the interest rates fluctuate every day that the markets are open for business, you and your loan officer will choose a time, and then your rate will be locked in.
Congrats, your loan has been approved and it’s time for closing! Loan docs are drawn and brought to wherever the closing meeting takes place. You have the right to review the closing disclosure three days prior to the closing meeting, which gives you time to review all the terms of your home loan. Most of the time, everything goals as planned, but if changes do need to be made, the three-day period is reset. Read all the documents and ask questions!
You then have the right to a final walk-through of the property 24 hours before closing to make sure that the seller has vacated and that any contractually stipulated repairs have been completed.
Need Personalized Mortgage Help? Contact Patriot Home Mortgage
We hope this blog post helped clarify the mortgage process! However, the home buying process is different for everyone, and it’s important to consult a mortgage expert to understand all of your options. We’d be more than happy to talk with you about your mortgage financing options. Contact us in St. George, Utah, or Mesquite, Nevada today. We provide services for conventional mortgages, VA loans, USDA loans, jumbo loans, reverse mortgages, and more.