The Mortgage Process — from pre-qualification to closing
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Buying a new home is one of the most exciting and life-changing events many of us will ever experience. At McLean Mortgage Corporation, we feel it’s important that you be well prepared and understand the steps involved in getting a home loan — and we’re here to help you with that. By understanding the mortgage process, and the requirements for everyone involved, you’ll be well-equipped to approach this new chapter of your life with confidence.
Pre-Qualification
Pre-qualification is an informal way of determining how much you may be able to borrow for the purchase of your new home. A pre-qualification requires no paperwork to be processed, and can be conducted over the phone, online or in person. You’ll need to provide information about your income, your debt, and your available cash for closing. You’ll then receive a pre-qualification letter, outlining the terms for which you currently qualify.
Loan Application
At application, your loan officer will help you choose a loan program, and when you decide the time is right, will lock in the current interest rate for that particular product. You will sign forms authorizing your mortgage lender to verify your information such as employment, account balances, rental payment history, and other credit references. You’ll be asked to provide supporting documentation to help verify your information — ask your loan officer for a checklist of the most frequently requested items. You’ll also receive certain disclosures about your loan, such as the Good Faith Estimate and the Truth in Lending Statement. Once you acknowledge receipt of the Truth in Lending Statement, your appraisal fee may be collected. A credit report fee may also be collected at this time.
Be sure to ask your loan officer to clarify anything you don’t understand.
Processing
During this phase, a mortgage loan processor will be assigned to assist with the processing of your loan and will be your main contact. Third-party services, like appraisal reports, flood certifications...etc. will be ordered, and the verification request forms will be sent. It may take some time for your lender to receive these completed items.
Throughout the processing of your loan, you’ll receive communications from your lender, indicating whether or not additional documentation is needed, whether or not your loan has been approved and if so, if the approval is based on certain conditions or terms. You will be notified in writing if your loan is declined, with an explanation as to why the lender is unable to approve your loan application.
Closing
Prior to closing, your settlement agent or attorney will notify you of the amount of cash you will need to bring to the table; you will need to bring these funds in the form of a cashier’s or certified check. Closing usually takes place in the office of the settlement agent or attorney, where they will review and explain all of the final documents before you sign them. There are many forms that you are asked to sign and understand at closing — so be sure to ask questions if there’s something you don’t understand. You will then receive copies of the closing forms and the keys to your new home!
Cindy A. Fox, CMPS
703-409-2002
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