Steps to Simplify the Mortgage Process

Step 1: Prequalification & application

  • Look at your budget -Ask yourself what you can comfortably afford while still meeting your obligations and goals.
  • Meet with your Lender -Work with your lender to get a pre-qualification letter that you can share with your real estate professional when you start shopping for a home.
  • Submit your application -Submit the application and fees along with supporting documentation to get the ball rolling.
clockThink ahead -Build up your credit well in advance of applying for a mortgage.  


Step 2: Conditional approval

  • Provide documentation -You'll have to confirm your employment status, income level, assets, debt info and other information to be conditionally approved.
  • Check your inbox -Watch for conditional approval letter to ensure that your mortgage amount and savings will cover the purchase price and closing costs.  Also, clear any conditions for approval.
  • Look at the purchase price -Check with your lender to make sure the appraised value of the house you want to buy is equal to or greater than the asking price. The bank will not loan you more than the house is worth.

clockPreparing for paperwork -Don't make any major purchases or open a new line of credit for a few months before and during the application process.


Step 3: Final approval

  • Set realistic expectations -Because of the level of detail involved, it takes time for the underwriter to examine all the necessary documentation before approving your application.
  • Stay connected -Be prepared to get a few phone calls from your lender, as more info might be needed.
  • Check your inbox -Keep an eye out for your final approval letter- you're approved!  Review your closing disclosure document thoroughly for accuracy to avoid surprises during closing.

clockAvoiding delays -Acquiring new debt in the months prior to during the application process could result in your loan being delayed or canceled.

  • Sign your documents -Sign all your final loan documents.
  • Transfer down payment -It's time to provide certified funds for any remaining down payment balance or closing costs.
  • Pat yourself on the back -Congratulations, you did it -you're officially a home owner!

clockSetting a date to close -The time it take to close can vary.  Have a clear conversation with your lender to set realistic expectations for a comfortable closing experience.


The material provided is for informational use only and is not intended for financial or investment advice.




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