THE LOAN PROCESS
The Sound Mortgage team understands the value of helping you achieve the best results in your real estate buying experience. For us, that means ensuring that you, as a borrower, know just what to expect during the home loan process.
APPLYING FOR A LOAN AND GATHERING DOCUMENTS
CONTACTING YOUR LOAN OFFICER
Step one begins with contacting me, your Loan Originator
During our conversation, we will discuss your credit, income and any debts to establish affordability as well as what loan programs are available to you. I will then issue a letter stating the loan amount for which you pre-qualify.
(Getting pre-qualified means a lender has given you an estimated mortgage amount based on a general look at your finances.)
Receiving a pre-approval starts with connecting and submitting an application with the help of your Loan Originator.
You will be asked to provide a number of supporting documents such as W2’s, Pay Stubs, Bank Statements, and Employment History. Once I have received your application and the supporting documentation, the file is handed to our processing department.
(Getting pre-approved means you start the loan process early-on by submitting your documents for underwriting.)
Our processing department verifies the accuracy of the information you provided in your application.
In addition, the processor will review your credit report, order an appraisal, title commitment, and other third-party information. If problems or questions arise regarding the information you provided, I will work with you to get the correct information.
UNDERWRITING THE LOAN
Once processed, one of our underwriters will examine the file to certify that it fits into the program guidelines and that the appraisal, survey, title commitment and other documentation are acceptable.
After reviewing your financial background, you will be notified of your approved loan amount.
There is one more step before the deal is done — and that’s closing.
Prior to closing, all of the supporting documentation (or “loan docs,” as they are called) are sent to the title company that has been chosen to handle the closing. And there are a lot of documents. The home buyers and sellers must then review and sign all of the pertinent documents, so the funds can be disbursed. This happens at the “closing” or settlement.
You will see a greater benefit from pre-approvals rather than just pre-qualifications because it saves you time, money and will give you better-negotiating power. It is now time to contact your realtor to begin your home search!