Process Of A Mortgage

Our job is to make the mortgage process as seamless as possible for you and your family. Thankfully, we are experts at that. The loan process begins with a Pre-Qualification Interview which is followed by these 6 stages: The Documentation Stage, The Appraisal Stage, The Underwriting Stage, The Conditional Approval Stage, The Clear-To-Close Stage, and finally the Closing Stage.

Read more During the pre-qualification interview a Loan Officer will gather information on a clients’ qualifications and get to know the clients’ needs and goals. The interview begins with a review of the client’s basic info including name, address, employment, income, assets and credit. In addition to reviewing the clients’ qualifications we go out of our way to understand the clients’ needs and goals. Including asking about medium and long term plans for the home they are purchasing/financing. Once we have an understanding of a clients’ qualifications, needs and goals we can present financing options that the client is able to obtain and which are consistent with their needs/goals. We will thoroughly go through each stage with you, but in the mean-time, feel free to browse each stage below to get a general knowledge of what is going on.

During The Documentation Stage you are the most important player on the team. As quarterback of the documentation stage, there are a few critical documents we will be asking you to hand off. These documents include:

W2’s – From the last 2 years
1040 Federal Tax Returns – From the last 2 years
2 Most Recent Paystubs
2 Most Recent Bank Statements – All pages
Copy of your drivers license

During this stage, it is critical that you don’t change any aspects of your financial picture. This means:

No Major Purchases (e.g. Purchasing furniture for your new home)
No Applying for New Credit (e.g. Obtaining financing for Car)
No Change in Employment (Please Don’t Quit Your Job!)

STAGE 2: THE APPRAISAL STAGE

During The Appraisal Stage, a licensed 3rd party Appraiser will estimate the value of the home you are about to purchase. This is meant to ensure for you, and your lender, that the home you are buying is worth the price that is being offered.
The most common method used by an Appraiser to determine your home’s value is to compare it against recently sold homes in your neighborhood; typically over the last 6 months. Although the Appraiser will not account for the following when determining your home’s value:

Roof
Appliances
Air Conditioning
Plumbing
Foundation
Windows
Floors

This is why we always recommend our clients obtain a Home Inspection in addition to their Appraisal. If you’d like the recommendation of a good Home Inspector, please let us know, we are happy to help!

STAGE 3: THE UNDERWRITING STAGE

During The Underwriting Stage, our Loan Processor reviews all the submitted documentation that you’ve provided and then turns it over to our Underwriting Department. The Underwriter is responsible for performing three critical tasks:

Organization – The Underwriter will compile and organize your documentation into a mortgage-ready file.
Qualification – The Underwriter will reconstruct your scenario to ensure it meets our qualification requirements and guidelines.
Verification – The Underwriter will verify that all information is accurate and authentic.

It is not uncommon for Underwriters to request additional documentation, so please do not be alarmed or discouraged if this happens. Instead, be sure to accommodate these additional requests as quickly as possible.

STAGE 4: THE CONDITIONAL APPROVAL STAGE

This is an exciting step in the process! During The Conditional Approval Stage you receive the first indication that your mortgage loan will be approved by us, as it’s been initially reviewed by the Underwriter. Although, this approval is only valid if certain conditions requested from our company are met. These conditions may include:

Additional Documentation
Letter of Explantation
Acceptable Appraisal Report

Once you have met all the required conditions requested, your file will be re-submitted to your underwriter for final approval.

STAGE 5: THE CLEAR-TO-CLOSE STAGE

You’re almost there! During The Clear-To-Close Stage the Underwriter “double checks” that all documentation has been provided and all conditions have been met. We will prepare the final documentation that will need to be signed at closing and we will be reaching out to schedule a closing date.

STAGE 6: THE CLOSING STAGE

Hooray! During The Closing Stage you will be signing the final documentation, signing your title documents, and receiving the keys to your new dream home! That wasn’t too hard, right!?

From all of us – CONGRATULATIONS!

But we are not done yet!

We will provide an ongoing support throughout the lifetime of your loan

Welcome to the Mortgage Broker’s Best family!

After closing your loan, your loan officer will enroll you in HomeBot. HomeBot is a ongoing service which keeps tract of home value and your equity position. When you are enrolled all the pertinent details of your transaction (purchase price, appraised value, loan type/term/rate, etc.) be entered into the HomeBot system for you.

You can also update your HomeBot account with the things you do post closing including principal payments on your loan and renovations/updates. Each month you will receive a customized “digest” from HomeBot indicating what your home is worth, how much equity you have in your home and what’s going on in your local housing market. With HomeBot you’re able to track your progress on paying down the balance of your loan and building wealth through homeownership.

In addition to HomeBot, your Loan Officer will reach out to you from time to time to make you aware of refinance opportunities and make certain that your home financing needs are taken care of. As a client, you’re welcome to reach out to us anytime if you have questions, need assistance with your mortgage or are interested in selling your current home, or buying another home. Regardless of circumstance, we are always available to you and happy to help you Finance Your Future!