There are several ways to apply for a mortgage.
You've found your home, you have a finalized purchase contract, and you're ready to buy. It's exciting-and maybe a little overwhelming. There are a few ways to get started. We'll walk you through it step by step.
Now that you know the home's purchase price and the property address, you can apply for a mortgage online with some lenders, or you can apply with a loan officer. You may have already researched different types of mortgages or decided on the best loan for you with the help of a professional. If not, take some time to explore the different kinds of mortgages that best meet your needs.
You may have been preapproved for a mortgage, but it's important to know that preapproval is not the same as loan approval. It can, however, simplify the process somewhat.
Mortgage rate lock
You can also pick a time to lock your mortgage rate. Interest rates can fluctuate while you're in the process of obtaining a home mortgage. By locking the rate, you can agree on a specific interest rate and avoid changes. A locked interest rate stays the same for a certain period, meaning you don't have to worry about rates going up before your home loan is finalized. Rates can also decrease, however. You may be able to negotiate a new interest rate lock with your lender. You can lock in your mortgage rate up to ten days before closing.
Your next step is filling out a loan application.
Loan application
We make the loan application process easy.
Step 1: Submit your loan application. You can do this online, over the phone, or in person. If you are working with a loan officer, they can help with the application submission.
Step 2: Submit your documents. In order to process and underwrite your loan, your lender will request income documentation (e.g., pay stubs, W-2s/1099s), asset documentation (bank account statements), other documentation (e.g., landlord history or, in some circumstances, a divorce decree), and any other relevant documents. You may still need to provide some updated documentation even if you were preapproved. Your loan officer can provide you with a checklist.
Note: Submission of this documentation is not a requirement for issuance of the Loan Estimate.
Step 3: Loan Estimate issued. Within three business days after the loan application submission, a Loan Estimate will be mailed or emailed to you. This contains the estimated interest rate for your loan, your estimated monthly payment, and estimated total closing costs. It also provides information about taxes and insurance costs, and any special circumstances regarding your loan—for example, if there is a penalty for paying the loan off early. You can then decide whether to move forward with your application.
If you have questions about your Loan Estimate, check with your lender. Whether or not you decide to proceed, let your lender know of your decision.
Step 4: Intent to proceed. You’ll indicate your intent to proceed with the mortgage transaction after receipt of the Loan Estimate. Processing of your loan will begin once this step has been completed.
Step 5: Fee payment. The lender will typically collect an application fee and order an appraisal of the home and property you want to buy after receiving the intent to proceed.
Loan approval process
Your loan then moves to the processing stage, where a loan processor prepares your file for review by an underwriter. At this point, your processor becomes your primary point of contact.
Now, you wait. This can be the hardest time of the homebuying process, and it usually takes between 30 and 60 days, although preapproval may speed up the process.
Here’s what typically happens in the processing stage:
- The documents and information you’ve provided will be reviewed and verified.
- An appraisal of the home and property is completed.
- An underwriter approves or declines your loan application.
During this time, you’ll be responsible for:
- Keeping your loan processor apprised of any contract changes—if you renegotiate the price, for instance, or request that the seller make repairs
- Finalizing property insurance, which may include flood insurance, if applicable (a copy of any property insurance policies will be required 15 days prior to closing)
- Reviewing any paperwork you receive and taking the required action
- Providing additional documentation as requested
- Reviewing any revised Loan Estimate issued
While your loan is being processed, you’ll want to avoid taking any action that may affect your finances, such as quitting a job, buying a car, or opening or closing any credit accounts.
What if my loan isn’t approved?
If your loan application is denied, your lender is required to provide you with an explanation in writing, and let you know which credit reporting agency was used to evaluate your application.
Don't be discouraged. A denial doesn't mean you can't get a mortgage. You may need to apply for a different kind of loan, get a co-signer, or take steps to improve your credit situation.
Mortgage application key terms
The Loan Estimate is a disclosure that provides a summary of the loan terms, estimated loan costs, other estimated closing costs, and additional application disclosures.
A loan processor is an individual who performs clerical and support duties during the mortgage loan process, including the receipt, collection, and distribution of information common for the processing or underwriting of a residential mortgage loan. They communicate with a consumer to obtain the information necessary for the processing or underwriting of a loan.
During the underwriting process, the decision to make a loan to a potential homebuyer is based on credit, employment, assets, and other factors.
The closing of a home purchase is when the deed and financial documents are delivered, necessary documents are signed, and the funds necessary to consummate a loan transaction are disbursed. Also called “settlement.”
Let us help get you into the home you want.
Contact us today.
Whether you’re ready to buy or just thinking about it, it’s never too soon to start a conversation with one of our loan professionals.
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Tasas hipotecarias vigentes
¿Ve una tasa adecuada para usted? Mortgage rates can change tomorrow, so start your application and talk with a mortgage professional about rate lock options.
Homebuying assistance
You may have ways to make buying a home more affordable. Check out the most common options and talk with our mortgage professionals to find out what else is out there.