Mortgage Loan Process

Mortgage Loan Process Overview with Best Realtor in Plano
The mortgage loan process is the third step of the home loan process. No matter what phase you find yourself at, the Mortgage Mark Team aims to answer your questions and be your mortgage resource library. The following is a guideline of tips to follow  to ensure you have a smooth mortgage loan process when purchasing a home. Once the loan details (such as program, rate, costs, etc.) are finalized and a contract has been executed and provided to us, the mortgage loan process begins. Don’t delay as there are only 20 working days in a 30 day contract AND these steps are in a series – meaning we can’t move forward until each step is completed.
Being responsive early in the process will ensure a smooth, on-time closing. 

Here’s what you need to know to be prepared for the next few weeks. Also, remember the do’s and don’ts when getting a home loan.

Know The Mortgage Loan Process

Get to know what happens during the mortgage loan process and realize that the only parts “we” (i.e. you and us) have any real control over is the first stage, the Loan Packaging. Certainly we can influence some parts of the process to be expedited but being quick in the beginning provides a cushion for slower third-party items along the way.

Note for purchases: typical contracts are written for 30 calendar-days which means we only have 20 working-days in the process. You’ll find there’s very little spare time along the way.

Hurry Up and Wait!

We would love to tell you that after spending an hour doing the up-front paperwork that you’re done and can sit back and wait for closing; however that’s not the case. While the bulk of the paperwork is done up-front, information and documents will be requested from you at various stages of the mortgage loan process, AND you will need to be extremely responsive along the way.

Loan Packaging – Here we structure the loan package and gather the paperwork required from you. This is the “big” effort that will be required from you. At each stage, the additional docs requested will be drastically reduced and the urgency required from you will be intensified.

Processing – Our Loan Processors review the paperwork you submitted along with third party documents (like the appraisal, title work, your verification of employment, etc.). Additional documentation may be required if questions arise from anything already provided.

Underwriting Conditions – The Loan Processor submits your file to underwriting, and the Underwriter will meticulously review the file to ensure it meets all guidelines and requirements. They most likely have a few conditions and additional documentation they may require from you. This occurs about a week before closing so it’s imperative that you be responsive.

Start Checking Email Daily

check email reminder from top lender

Once you start the mortgage loan process you will need to start checking your email daily (assuming you don’t already). While we will try our best to call first and not “hide” behind emails, the fact is that much of the communication for us (and for third parties) will be via email and you will be accountable for being responsive. Note: we’re not real fond of text messaging because emails provide a written record AND are accessible by all members of the team. Please use MortgageMark@HomeBridge.com for prompt responses throughout the mortgage loan process.

 

Home Loan Process: Processing & Credit Approval

Loan Packaging (1-2 business days)

Setup (2-3 business days)

  • The Setup Team orders third party items (such as appraisal, title, insurance, etc.)
  • Third Party Docs Pending – waiting time is variable

Processing / Credit Approval (2-3 business days)

  • Processor reviews file and possibly requests additional docs for credit approval
  • Docs reviewed and Borrower becomes credit approved – third party items still pending

Initial Underwriting Approval (2-3 business days)

  • Appraisal and third-party items arrive and file goes to underwriting
  • Both borrower and property are approved – also, additional documentation requested

Final Underwriting Approval (1-2 business days)

  • Documents are provided to Underwriter to satisfy outstanding conditions
  • Underwriter issues the Clear to Close (CTC)  file goes to the Closing Department

Closing Disclosure Prepared (1 business day)

  • Title receives instructions and begins to prepare the final Closing Disclosure (CD)
  • Our Closing Team and the Title Company likewise prepare closing docs

Closing & Funding

  • All parties sign the closing documents at the Title company and Title faxes for funding
  • Funding occurs the same day for purchases (while it will be 3 days later for refinances)

After Closing

  • Finally, setup auto drafts after your 1st Payment, watch for Junk Mail, etc.
  • Next year, be sure to File Your Homestead, Contest Your Property Value, etc

 

Again, as you go through not only the mortgage loan process but also the home loan process, know that the Mortgage Mark Team is here to answer all of your questions.

Tips for a Smooth Mortgage Process

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