Mortgage Process: What Happens After You Apply For A Mortgage
|Pre-qualification||This tentatively approves you for a certain loan size pending a credit and employment check.|
|Application||A loan officer gathers information from you, such as your tax returns, pay stubs, etc.|
|Processing||The loan officer turns your loan over to a processor and their job is to verify all the information they feel is necessary, such as employment and the funds on deposit in your bank accounts. If any documentation is missing, they will contact you and request more information|
|Conditional Approval||After all the information is given to an underwriter, a condition approval is issues and the appraisal, title policy and survey are ordered.|
|Final Approval||At this time the conditions, verifications of funds, and the appraisal are submitted to the underwriter and a clear to close is issues.|
|Closing Date||About 3 to 4 days after we have a final approval, a closing date is set. (Closing dates cannot be set without a clear to close.)|
Avoiding Problems During The Loan Process
Having a mortgage pre-qualified or conditionally approved doesn't mean you're guaranteed to get the agreed upon amount. But sometimes it's hard to anticipate the life decisions that will lose your mortgage qualification. Let's talk about some rookie moves that can result in the approved mortgage being taken away:
- Change jobs.
- Take out a second mortgage or home equity loan.
- Apply for new credit cards.
- Make large purchases, such as a new car.
- File for divorce.
- Make large deposits without copies of checks and deposit slips.
- Payoff subordinate liens (i.e. second mortgages or equity lines)
- Transfer your savings into a new account.
- Put your home on the market or refinance it.
- Make cash advances on credit cards.
- Co-sign on a loan for family, friends, etc.
- Make large deposits into accounts being verified for mortgage unless the deposit can be verified from an acceptable source.
- Hesitate to call with any questions or concerns.
- Miss a bill or mortgage payment!
Mortgage financing doesn't have to be a stressful and complicated process. Steph Kaye & Associates will work with you and your lender to get your mortgage approved. Contact us today to get started!