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Saturday, February 6, 2021

Home Loan Process

HELPFUL TIPS FOR A SMOOTH CREDIT APPROVAL






TO DO

  • Keep making your mortgage or rent payments
  • Stay up to date on all existing accounts
  • Continue to live in your current residence
  • Be ready to secure all deposits
  • Ask us before making any financial decisions during the loan process
  • Let us know if your salary or other compensation changes


NOT

  • Make major purchases (e.g. car, large appliances, etc.)
  • Apply for or open a new credit card account
  • Transfer funds from one account to another
  • Quit your job
  • Close all credit card accounts or change bank accounts
  • Run your balance before you ask your loan officer first



Applying for a loan
THE MORTGAGE LOAN PROCESS

Step 1
Loan application & pre-qualification

The first step in the mortgage process is to fill out a full loan application. Once your application is received, an experienced mortgage professional will explain various financing options that are best suited to your goals. These early stages in the process do not guarantee approval for a mortgage, but they do provide the knowledge necessary to set realistic expectations about spending limits.

Step 2
Documentation
Financial documents supporting the mortgage application must be submitted and verified by insurers. Commonly requested (but not limited) documents include 30-day pay slips, 2 years of full tax returns, 2 years of W2 and 1099, photo identification for all applicants, current bank statements for checks and savings accounts, and current bank statements for retirement and investment accounts. If you have experienced a divorce or bankruptcy, appropriate documentation is required.

Step 3
Start the loan process
When all parties have agreed to the terms of the sales agreement, meet with your mortgage lender to discuss the various financing options that you may qualify for. When the type of mortgage and the term are determined, sign the loan application and loan estimate. This document will not be 100% accurate at the initial stage, but it will give you a realistic picture of your transaction.

Step: 4
Shopping from home
Once pre-approved, you can start shopping for your dream home! You can consult with a broker about your needs and make a list of available inventory that matches your search criteria. When the perfect home is found, Eric will present your offer to the seller

Step: 5
Underwriting
A mortgage insurer's job is to assess the risk of lending you, the applicant, money to buy your home. They take into account factors such as creditworthiness, employment history and income, and your ability to repay when deciding whether or not to approve your loan.

Step: 6
Inspection & evaluation
Your broker will recommend a knowledgeable home inspector who will perform a thorough inspection of the property. The inspector checks the property for structural and / or material defects and prepares a written report of its results. If the property contains items that require attention as per the inspection report, the agent may submit a building dissolution document asking the seller to fix the deficiencies or credit the repairs upon completion. (A copy of the inspection is not required for USA Mortgage as it is a voluntary inspection.) USA Mortgage will request an appraisal of the property from one of our approved providers. The appraisal report is required for underwriting as it provides an appraisal of the property's collateral and assures the lender that the property's value equals the purchase price.

Step: 7
Conditional admission
After the initial documentation has been collected and the assessment report has been created, the file is submitted to our underwriting team for review. Typically, the underwriter will give "approval" at the first review, but under certain conditions. These “conditions” are points on which the underwriter needs additional clarification. Once these conditions are met, final approval will be given.

Step: 8
Final approval
Final approval will be given when all records have been deregistered from Underwriting. It is imperative that this final approval date be met prior to the date of your loan approval in the sales contract. Because this milestone is time sensitive, by staying motivated and providing all requested information, we can meet the set loan approval date and avoid delays or renewals.

Step: 9
Conclude
The loan completion appointment is usually held with a title company and is the time when all buyers sign the final loan and title documents. This includes the transfer of the title and all recording devices that indicate YOU as the new owner!



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