From buying your first home to refinancing into a lower interest rate, a mortgage can be a powerful resource. Knowing your goals for your mortgage will help you streamline the process and can clarify which loan options and programs are best for you.
The most important part of understanding the mortgage process is finding a lender who understands you and your home loan goals (like saving time and money). Some parts of the process can be taken care of now while other parts will occur after you’ve picked out your home. Here’s a quick and easy view of the home loan process:
First, submit your mortgage application. This lays the groundwork for your Home Loan Specialist to be able to give you accurate interest rate quotes and down payment options.
After your application is completed, you’ll start getting your home inspection and appraisal under wraps. This is when you’ll be asked for any additional documentation to close your loan, if you haven’t already provided it.
Your home loan will go through underwriting (remember, it has already been through underwriting at the beginning of your loan process if you became a Certified Home Buyer). This just verifies all conditions on your home loan are approved and then you’ll be issued a “clear to close.”
The underwriter will issue your final approval, process your closing paperwork, and schedule your closing date and time. On your official closing day, you’ll have a lot of documents to sign but in the end your loan will be funded, and you’ll get the keys to your new home.
When buying your first home, you’ll likely have a lot of questions. One of the most common questions we get asked is “What should I do first?” The first thing you should do is find out how much house you can afford. We provide an easy-to-use calculator using your monthly income with your projected loan term.