The Mortgage Financing Process The number one question a homebuyer often has is: “What does the mortgage process entail?”
In very simple terms, the following is an outline of the process upon which you are about to embark:
Gather the following information to have at hand when you meet with your lender or mortgage broker. This will help them determine whether you qualify for a mortgage:
- Contact information for your employer and your employment history
- Proof of address and your address history.
- Government-issued photo ID with your current address.
- Proof of income for your mortgage application.
- Proof of down payment. (amount and source)
- Proof of savings and investments
- Details of current debts and other financial obligations.
- Know your credit score.
- Determines price range – It’ll help you understand what your monthly costs will be and determine your price range.
- Guarantees the rate – from 90-120 days. And we’ll automatically adjust your rate down with any market reductions.
- Allows you to put in a competitive offer – become a successful bidder with a short subject to financing requirement.
- A pre-approval does not mean that a lender has fully reviewed your documentation and you may still need the approval of a mortgage insurer. This is why using the knowledge and expertise of a mortgage professional is so important.
Offer is accepted:
- Send your Mortgage Lender/Broker a copy of the contract and MLS listing
- An appraisal is ordered. (if necessary
- Send in any remaining documents required for financing. (income confirmation, down payment confirmation, etc)
- Send an inspector in (if applicable) – Your Mortgage Lender/Broker can help you arrange this.
- Receive the lender’s approval on property and final approval letter to remove subjects.