Hope everyone’s month is off to an amazing start and you are jumping on the slight interest rate dip that has occurred this month. If any of your rental properties are sitting on interest rates above the 5% area, make sure to try and take advantage of the rate dip to increase your cash flow!

This month, I just wanted to do a general recap of the traditional mortgage process from start to finish…

  1. Pre-Qualification – This important first step lets you know how much you’ve prequalified for, so you can stay within your home buying budget.
  2. Application – Whether it’s online or in person, we’ll gather the necessary documents from you to complete your quick and seamless application.
  3. Submitting Paperwork – Additional paperwork is often needed to streamline the process, such as two years of W2’s, two months of bank statements and one month of paystubs.
  4. Finding the Home – Keep your prequalification range in mind while you search. When you find a home, remember closing costs, seller concessions and loan length are all important.
  5. Appraisal – An appraisal is required to verify the value of the property to ensure you’re not overpaying for your potential new home.
  6. Getting Insurance – Most mortgage lenders require home insurance that covers fire and other hazards, such as floods. Some loans also require mortgage insurance if your down payment is less than 20%.
  7. Loan Processing – We package all final documents and send to our processing department for review and approval. Your details are then sent to underwriting to ensure everything is complete.
  8. Underwriting – An underwriter will look over your loan application from start to finish. They will see if any additional information is required and then make the decision to approve your loan.
  9. Closing and Funding – With the underwriter’s approval and all documents submitted, the packet is sent to the attorney or title company to be signed, funded by the lender, and filed for records.

Please keep in mind this synopsis is going over the traditional loan process. Several types of loans will have different paths from start to finish. Have a great month and let me know if you have any specific questions pertaining to your own personal situation.

By Andrew Augustyniak, Branch Manager Prime Lending