What is the loan process anyway?
You have just found the right home – now what? We know that finding the right home can be challenging and we would like to help you understand the second phase – securing a mortgage. Moving through each step below, you will become familiar with the progression of the loan process.
- Contract of sale is signed and sent to both the buyer’s and seller’s attorneys for review.
- You will order a home inspection.
- After the home inspection, further negotiations may occur between the lawyers.
Once the above steps are complete, you are now ready to secure the loan for your home.
- MR Capital Group, the mortgage lender, will send you a packet of disclosures, including the Good Faith Estimate (GFE), to sign and return.
- Once these are received, an appraisal of the property will take place.
You may hear the word “concession” mentioned. A concession is a sum of money that can be added to the purchase price and used for closing costs IF the appraisal of the property can reflect the increased purchase price.
- Our processing department will verify income, employment and the submission of all documents.
- The file is now transferred to the Underwriter. He/She will review all of the above information and then approve the loan. Often there are criteria that will need to be met for the commitment letter to be honored.
- The commitment letter is sent to your attorney so he can order the Title report.
- The processor shares the conditions needed with you.
- When all conditions are met, the underwriter clears the file for closing.
- The closing is scheduled and the HUD Settlement Statement – which itemizes all costs incurred for the purchase – is prepared.
- At the closing:
- You will sign a note promising to repay the loan
- The mortgage or lien on the property is now created
- The title company records the sale and mortgage information with the county
- File is returned to the mortgage lender.
- Time to pack and move into your NEW HOME!