If this is your first time applying for a mortgage loan, DFW, you probably are wondering about the process involved in obtaining one. And that is a valid point to tackle, considering that the way you deal with the process is a primary determinant for the success of your mortgage loan applications.
So, in this post, we are sharing the 5-step process involving a mortgage loan, DFW:
Step 1: Origination
The origination itself is a multi-step process, but it involves pre-qualification wherein a loan officer meets with a borrower to gather all the information about the latter’s income and the property in question. All paperwork and documentation are then run through an automatic underwriting program needed for loan approval.
Step 2: Underwriting
Underwriting pertains to a lender verifying your income, assets, debt, and property details, which is necessary for the issuance of loan approval. In addition, the lender may also ask for additional information such as where bank deposits came from or request for proof of assets. The underwriter can investigate your credit history, order an appraisal, make verification of your income and employment history, examine your debt-to-income ratio, and verify your down payment and savings.
Step 3: Evaluation for conditional approval
In this step, the underwriter, in most part, is satisfied with your mortgage application. That means the lender is willing to approve your mortgage loan, DFW, provided you can meet their pending conditions. Do note that receiving conditional approval makes your application stronger than pre-qualification alone. The usual approval conditions that you should be aware of include:
- Income and bank statements as proof of monthly income
- Verification of mortgage insurance
- A letter of explanation for a recent large withdrawal (if there is any)
- Additional paperwork to meet specific loan requirements
Step 4: Clear to close
In this stage, the lender finds that you have met the requirements and conditions to close on your mortgage. But they should check to ensure that they have inspected all your documents and verified that you meet the expectations relative to the type and amount of mortgage loan. Once you are clear to close, the lender starts preparing for the closing day. They will notify you about your closing meeting. They will also contact your title company, real estate attorney, or other parties attending. The lender will also prepare the final documents that you will need to sign on your closing date.
Step 5: Closing
Closing is the last step in buying or financing a home. When it is time for closing (also called “settlement”), it means that you and all the parties involved in your mortgage loan application gather and sign the necessary documents. When the signing is complete, you become responsible for the mortgage loan. You are legally required to repay the mortgage.
Online looking for a reputable broker that can help you in obtaining a mortgage loan, DFW? Talk to a mortgage expert at HomePlus today. (512) 949-3385