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The Loan Process


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Getting a mortgage can be a very confusing process and this is why it is critically important to find a mortgage professional you are comfortable and can put your trust in. After all, he or she is responsible for helping you achieve your dream home and make the possibly the largest financial decision of your life.

Without going into great detail of the entire loan process, we will briefly layout the steps for you, so you can manage your expectations throughout the process of getting a mortgage.

Pre-Approval - The preapproval stage involves you getting supporting documents for your loan officer that will help determine the amount of mortgage you qualify for. These documents will include but not limited to pay stubs and/or W2s, recent bank statements, rent receipts and perhaps a job reference letter. You will also need to fill out an authorization form and provide your Social Security Number to have your credit pulled. You will also need to complete a loan application and sign several disclosure statements. This need not be stressful as long as your mortgage professional does his job right.

Approval Process - With technology today, your loan will be submitted for an automated approval and the verification process will happen afterwards. This is done so you can know very quickly whether you are approved or not. In this process, the computer looks at your credit score, any credit issues, income, downpayment, etc. and will either generate an approval, an approval with conditions or non-approval. Conditions are basically further information or documentation that the bank wants to be on or before closing of the loan. Examples are updated bank statements or a death or marriage certificate or reference letters.

Appraisal of the Property - At the time of the Approval Process, an appraisal will be ordered of the property you are purchasing. Typically, you will pay the cost of this. This is to your benefit to ensure that you are paying fair market value for the property you are purchasing. The appraiser has certain guidelines that he will follow to arrive at a fair market value of your new home. Based on this number, the bank will determine the amount of funds it will lend to you.