What happens after pre-approval? Words like underwriting, insurance premiums, and closing begin to pop up in conversation, and you might find yourself wondering what all these terms mean. Today, we’ll be walking through the loan process step by step. Mortgages don’t have to be confusing! We believe homebuyers should know what’s going on through the lifecycle of their loan.
The Application Process: Pre-Approval and Beginning Stages
The first step is getting pre-approved. Pre-approval for your home loan considers your household income and payment history before determining how much of a loan you qualify for. Online pre-approval applications have become a simple and secure way to get started.
After approval, your mortgage company will create an account for you, usually online. This online account is an easy and convenient way to communicate with you on the progress of your loan. Through this account, they can share updates on the progress of your loan, send you documents that need signing, and communicate next steps and what to expect during certain stages of the loan process. Your loan is now considered “opened.”
Take the first step and apply online with MHC Mortgage.
Processing and Underwriting
Your loan is reviewed by a Processor, who inspects your loan application and ensures that your mortgage company has all the required documents for your loan. Processors organize your application and check for accuracy, making sure your loan process is as smooth as possible.
Next, an Underwriter verifies all aspects of your loan application and the loan program you’re applying for. Underwriters perform a detailed credit analysis, reviewing your current financial situation and your loan program’s specific requirements.
During the Processing and Underwriting stages, your mortgage company may ask for additional documentation needed to help verify your loan’s requirements. You may have multiple requests to provide documentation, so it’s a good idea to keep a folder of all your files together. Creating a smooth process with the Processor and Underwriter will help your loan paperwork flow more efficiently, bringing you closer and closer to closing day.
Final Stages
At this point, you are approaching your scheduled closing date and your mortgage team is checking off the final items from their list. This includes a final verbal verification of employment and a soft pull of your credit to check for new inquiries. If all requirements are verified by the underwriter and there aren’t any other issues, your lender will issue the final loan approval.
Closing Process
You’re almost there! At this point, a title company verifies the real estate title is legitimate and will issue insurance for the property. Your mortgage company works with the title company to give you all the final details you need, such as the final closing disclosure, what to bring to your closing, and how much money is needed at the closing.
Closing
This is the day! Make sure you have your government issued ID and your celebratory champagne! All that’s left is signing the final loan documents and receiving the keys to your new home. Congratulations – you’re officially a new homeowner!
There are a lot of steps involved in securing your mortgage and closing on your home. Check out our blog for helpful articles on what documents are needed and when, and what to do and NOT do before, during, and after the loan.