Step 1: Pre-approval (First Contact) After asking a few questions, and listening, about you and your housing goals, we will ask that you complete a loan application, with your authorization we will pull a credit report, and help determine the home price you can afford, provide and explain all your financing options, and pre-approve you for a mortgage loan.
Step 2: Finding Your Home (The Fun Part) You and your Realtor will preview various houses to find the perfect home for you and your family. Once you have found a home you like, your Realtor will assist you in making an offer by writing a contract and then negotiating the terms of the sale. We will provide you will a detailed financing estimate prior to making your offer. In an effort to help get your offer accepted, we will reach out to the listing agent to highlight your financial qualities.
Step 3: Formal Loan Application (Day 1) Once your contract has been accepted, we’ll meet to complete the loan application. If you’re ready, we’ll also lock you into an interest rate at this time. Then your loan is assigned to our loan processor, Amy Shattuck, who will work to get the necessary documents together and to set up your loan for closing.
Step 4: Document Collection (Days 2-3) For your loan to proceed quickly, any documents requested at your loan application will need to be shared with us as quickly as possible, to determine if any further documentation is needed.
Step 5: Appraisal/Inspection (Days 4-8) At this point, if you choose, you may obtain a Home Inspection. Once you are satisfied, we will order an appraisal to determine value. At times it may be necessary to obtain well, septic, and water tests. A Mortgage Survey may also be required. We’ll handle all of this for you.
Step 6: Approval (Days 9-11) After Amy receives the necessary paperwork, she submits your loan to an underwriter for approval.
Step 7: Conditional Approval (Days 12-17) Sometimes the underwriter needs a little more documentation and will ask for it when he/she delivers the conditional approval. This is a normal part of the loan process.
Step 8: Obtain Homeowners’ Insurance (Days 17-19) Homeowners’ insurance is a very important step in the mortgage timeline because your lender requires it. Without evidence of homeowners’ insurance, you can’t close on your new home. For your homeowner’s policy to be issued, the company will need important information from both you and the lender. So during these 2 days, you should select an insurance company and submit the completed application for homeowners’ insurance to it. Please remember that the first year premium must be paid in full prior to, or at closing.
Step 9: Clear to Close (Days 19-20) Once the underwriter is satisfied that all the conditions have been met and has reviewed the requested documents, he/she will deliver a “Clear to Close.”
Step 10: Acknowledgement of Closing Disclosure (Days 21-23) Closing Disclosures will be prepared by the Mortgage Company and reconciled with the Title Company at least a few days before closing. This Disclosure will give the final amount that you will either need to bring to closing or will receive back from any earnest money that may have been paid.
Step 11: Closing (Days 24-27) It takes approximately one hour to sign all the documents and then the home becomes yours!
Step 12: First Mortgage Payment Your first mortgage payment will be due on the first of the month one full month after your closing date. For example, if you closed on January 15, your first payment would be due on March 1. *Please note: These are general guidelines only. Mortgage loans that require third party approval—FHA 203K Renovation, MSHDA Downpayment Assistance, USDA Rural Development—may take slightly longer.