The mortgage process can be confusing and sometimes seem to not make sense for borrowers. Since most people don’t buy many homes or get many mortgages in their lifetime sometimes it can seem challenging and a road with many bends and detours. We strive to help you navigate it and explain the process throughout. You will have one point of contact throughout the process to ask questions and get updates. That is your Mortgage Loan Officer. We don’t hand you off to other people to work with you will work with the same Loan Officer start to finish. The mortgage process starts here:
You begin the Mortgage Process with the Mortgage Application
In the beginning your Loan Officer will fill out the Mortgage Application with your assistance. This is building the loan file that will be presented to the underwriter. The Mortgage Loan Officer will pull your credit, will collect information to show you have been employed for at least 2 years, will gather information on your assets for a down payment if you are buying a home. Getting a full and complete application is key to a smooth loan file. Make sure and help your Loan Officer get the details he needs. Once this is completed the Mortgage Loan Officer will request disclosures be sent to you to sign. Once you sign all these disclosures the mortgage process begins.
Next your loan goes to Loan Processing
During this process the Processor working with the Mortgage Loan Officer will review all the income and asset and other documents you sent. They will also review the disclosure’s you signed to make sure everything is signed and dated correctly. They may send items back to have you correct or update so be prepared to return that information quickly. The processor will also order the Title Report, Appraisal, and request the Homeowner’s Insurance Binder be prepared by the insurance agent you choose. Once all this information is gathered and ready the processor will submit your loan to Underwriting.
Underwriting your Mortgage Loan and the Conditional Approval
Once the Processor submits your loan the Underwriter will review all the documentation for income and assets. The underwriter will use guidelines for example like Fannie Mae issues to underwrite your mortgage. The underwriter will look at the appraisal and make sure it meets the guidelines and that there are no concerns with value or the comps used. The underwriter will review the title commitment and make sure that all liens or title issues are addressed prior to closing. Once the underwriter is finished with their review they will issue the Conditional Approval. To complete the conditional approval the underwriter will make a list of any additional items they may need to review or any documentation they may need to clarify income or assets or information on the appraisal or title report or homeowners insurance.
Getting the Final Approval in the Mortgage Process
Once the final documentation is submitted back to the Underwriter the Underwriter will review it all and issue the final approval. Once this is done loans normally go thru a Quality Control process to make sure no needed disclosures or documentation was missed. Once this is done the lender will work with the title company to prepare the Initial Closing Disclosure and send that out to the borrower for signature. After this is signed the closing can take place in 4 business days from when it was signed. For example, if it was signed on Monday the borrower can Close on Thursday.
The Closing is done Now What?
After you close on your mortgage there are a few steps left. Depending on whether you are closing on a purchase or a refinance those steps can differ. For a Purchase loan the funding and recording of the ownership and deed of trust can happen the same day. For a Refinance if the Refinance is on a Primary residence there is a waiting period of 3 full days called the Right of Recession. This is a time when you can change your mind on the refinance. If you want to move forward and let the loan fund and record then you just wait for this period to pass then the loan funds and records. Congratulations you made it thru the Mortgage Process successfully. Sawtooth Mortgage Team is your premier mortgage experts located in Meridian, Idaho. They pride themselves on offering some of the lowest rates nationwide and make the mortgage process simple, straightforward and fast for borrowers seeking a mortgage in the Boise, Meridian, Eagle as well as the whole state of Idaho. For more information on the Mortgage Process or how to get pre-qualified content us today at (208)501-8851!