What To Expect When Applying For A Mortgage
During the interview, your loan officer will begin by going through some preliminary qualifications with you that will allow him or her to determine your loan needs. An application is taken and you will be asked to provide other supporting documentation (Purchase / Refinance or Credit Line / Home Equity Loan). This information includes such documents as: W2's, tax returns, current pay stubs, and bank statements.
There are initial costs to start the mortgage process. There is an application fee, a credit report charge, and a lender's property appraisal fee, determined by the value of the house.
The next phase is the processing of the loan. Your loan file will be examined to ensure that all information is complete and accurate. Verifications, appraisals, credit reports, and other necessary documents will be ordered. Once the file is complete, it is then underwritten.
Underwriting involves the evaluation of all documents that make up the file to determine if the loan should be approved or denied, based on the factual information presented. At this point, the application is either denied or approved. If approved, the loan package is signed, dated, and sent off for closing. Your loan officer will inform you of the decision and confirm it with a written loan commitment. If your loan is denied, you will be informed in writing.
The final stage is the closing. After your loan is approved, closing documents are prepared, assembled, signed, and recorded. Your mortgage is now created and the funds will be disbursed
The total time frame from the application to funding will vary -- with refinances usually processed faster than purchases. Typically, if the process goes smoothly, you will have your loan within 2-4 weeks.