By your wisdom and
understanding you have gained wealth
for yourself and amassed gold and
silver in your treasuries. Ezekial
28:4
The
Mortgage Process can be broken down into several steps.
While these steps are not generally complex, the path to a mortgage can
be frustrating at times. However, a reputable mortgage loan
professional is trained and experienced in navigating the course for you
and can be invaluable in the process. The first step is
prequalifying and finding the home
you plan to purchase. Below is
a general breakdown of the steps.
Pre-qualification and Pre-approval
Before starting to look at houses,
many people meet with a mortgage
broker or mortgage lender to
"pre-qualify" or obtain a
"pre-approval."
Application
Once
an offer to buy a house is accepted
by the seller, you'll make formal
application for a mortgage. You will
submit your preliminary
documentation and any other
documents your loan professional
requests.
Lender Review of Application
The
lender reviews the application and
the information through an
underwriting process and makes a
decision as to whether or not to
make the loan. If the lender decides
to make the loan, it issues a loan
commitment saying that it will make
the loan in addition to any other
requirements needed to complete the
loan process.
Coordination with Closing Agent
After
the loan is approved, the borrower
gives the lender information about
the closing agent for the
transaction so that the lender and
the
closing agent can coordinate
their functions.
Review of Title Insurance Commitment
Prior
to the closing, the closing agent
sends a copy of the title insurance
commitment to the lender for review.
The lender reviews the commitment to
make sure that the title to the
property is good and that the
priority of the lender's mortgage is
acceptable.
Loan
Documents and Closing Instructions
Shortly before the closing, the
lender sends the closing agent loan
and mortgage documents to be signed
at the closing and a list of
instructions to be carried out by
the closing agent before the
proceeds of the mortgage can be
released.
Funding the Mortgage
As
part of the closing process, the
closing agent complies with the
lender's instructions. Then the
lender reviews the closing agent's
actions, and, if they are
acceptable, releases the mortgage
proceeds so that the transaction can
close.
