The Mortgage Process
The time it takes to complete the loan process varies for each application. Here’s a list of the stages required to process a mortgage. Remember that completing your application accurately and fully will help speed the process.
Processing. After you apply, a loan processor will collect documents and verification to support your request for a loan. The time in processing will vary depending on the type of loan and how quickly the processor receives the documents needed. Much of the processing involves help from other sources, such as:
Appraisal - An appraiser will judge the value of the property, generally based on the recent sales in your market.
Credit Verification - We’ll request a credit report through a credit reporting agency to verify your outstanding debts and payment history.
Income verification- In addition to the documents we request from you, we’ll ask your employer to verify your income.
Asset Verification - To confirm that you have sufficient funds required to close on your mortgage.
Previous Housing Verification - We’ll request the history of your rent or mortgage payments from your lender or landlord.
Underwriting. Once the application is processed, your processor will submit the complete package for review. The Underwriter compares your loan request to the guidelines of the lender or its investors for the type of loan. Then the underwriter issues a decision on your application based on established guidelines.
Closing. Closing occurs when you sign the papers for your mortgage loan, and when the property is transferred, if your loan is for a home purchase. Most closings take place at a title company or real estate office, but the location procedures vary by state.
Refinancing Checklist
- A copy of the deed and your current title policy must be provided to the Lender either at application or as soon as possible thereafter.
- If you are receiving any cash from the refinance, the Lender will require a letter stating the purpose for the cash out refinance. This letter is required prior to the loan approval.
- If you are refinancing to lower your monthly payment, shorten your mortgage term or obtain other financing ONLY, you are not permitted to receive any cash at settlement. Any monies in excess of that needed to complete the closing of your loan must be returned to the Lender. The Lender will apply these funds to your unpaid balance, thereby reducing the total amount due.
- You must request, in writing, to the Payoff Department of your current mortgage holder, a payoff statement which should also include a per diem factor (daily interest rate). We must have the original copy of the payoff statement one week prior to settlement.
- Unless you have signed the Title Authorization for the Lender to obtain your title insurance, you must call your present title company or any other at your option to order a new title report. We must have a copy of the title commitment/binder at least one week prior to settlement.
- You must provide documentation as required by the title company to remove any exceptions on the title commitment/policy which relates to boundary lines, or other matters that would be cleared by a current survey. Contact your title company immediately to determine what documentation they would accept. You may be required to provide a survey.
- Evidence of paid property and/or school taxes will be required by the title company. Please contact your title company to determine the exact documentation required by them. This information may be obtained from your current mortgage holder or your county/municipal tax department.
- You may be required to obtain a termite certification on your home, we will advise you accordingly. If required, this certification must be no older than 30 days prior to the date of settlement and the original certification must be provided to us one week prior to settlement.
- You may be required to have a well and /or septic certification completed on your system, we will advise you accordingly. If require, the original certification must be provided to the Lender at least one week prior to settlement.
- You must obtain a one-year (1 Year) paid policy for hazard insurance with the Lender, its successors and/or assigns, listed as the loss payee. The insurance coverage should be at least the amount of the mortgage. The original policy plus the paid receipt must be provided to us at least one week prior to settlement.
- Points paid on your mortgage may not be fully deductible for the current tax year and may be required to be deducted over the term of the loan. Consult your accountant or the IRS for specific requirements and deductibility of points.
- A rescision period of three (3) business days follows settlement. During this period, you will not receive your settlement monies and may cancel at any time without adverse consequences.
