1. Get Pre-Approved
The pre-approval is usually the first step in the journey. A pre-approval is a no cost, no obligation simple and quick process to help you know what to expect for payment, cost, programs and price ceiling. This can typically be done with a 10 to 15 minute phone call or an online application which will provide basic income and asset information and we will do a credit check. Once the pre-approval is complete there is no rush to buy – we can simply update this application down the road whether it be months or years and get you pre-approved again in seconds if you don’t end up buying right away.
2. Property Search
As you start seeing properties that interest you online or with a Realtor I encourage my clients to reach out and provide me the address. That will allow me to send a custom tailored spreadsheet with market rates so you can get a real sense of cost. I am able to show different mortgage programs, as well as different prices to help you figure out what to offer along with different down payment choices so you can make the right decisions. Once you decide to make an offer I will send you an updated pre-approval letter to match the offer you are going to make to present with the offer and deposit. I also sometimes follow up with the listing agent to let them know about your credentials so they understand your strength as a buyer.
3. Accepted Offer
Once the offer is accepted, the loan application gets officially submitted. If I haven’t already, I’ll then send you an email outlining the list of documentation required for approval and the instructions for safe and secure uploading of documents. You would typically also order an inspection (consult your Realtor for help with this). Our bank orders a 3rd party appraisal once we confirm the inspection is satisfactory.
4. Application In-Process
At this point you are officially in process and have begun uploading your income and asset documentation to us and electronically signed your loan disclosures. Once you have completed the entire list of required documentation and we have obtained the signed purchase and sale agreement the file moves from processing to underwriting. The underwriter’s job is to review everything you have submitted, and compare that to the loan application we submitted and issue an approval. Typically the underwriter completes their initial review and sends a list of questions and or additional document requests which we will request from you. After you provide the follow up documents and the underwriter reviews and approves the items they sign off on the loan for commitment. We then email you your loan approval (commitment letter) which allows you to tell the seller of the property you have satisfied the financing aspect of the transaction.
5. Pre-Closing
Within 10 days of closing the bank will do a “soft” credit analysis to determine if you have obtained any new credit or had any credit inquiries since the start the of application. We will also reach out to all employers and confirm that you are still employed. The bank will then send a closing disclosure or “CD” to you providing you with all pertinent loan information such as rate, closing costs, money due at closing. This form will need to be signed electronically by you, exactly like the upfront disclosures, and by law this must be signed at least 3 days before closing.
6. Closing
The closing agent you are working with from the beginning of the process will reach out and advise you of the closing details such as:
the amount of a check or wire needed for closing, as well as the time and location of the closing which is agreed upon by all parties in advance. You will also be reminded to bring a copy of your license to the closing table. The actual closing takes about an hour or less. You might also do a walk through the home the day before (or morning of) closing to make sure you are satisfied with the condition of the property before signing the papers.
7. Post Closing
After closing you will be receiving a mortgage statement from the bank. The first mortgage payment is typically not due until the month following the closing. So Closing on March 28th for example you would not make your first payment until May 1. The bill will not come in the mail until the last week of April (or just about a week before the payment due date). This will all be laid out in the closing documents but because of the sheer mass of paperwork it often gets overlooked. You typically will not setup auto payment until after the first mortgage is paid because if the loan is going to get sold it will likely happen right upfront and you don’t want to have to fill out the paperwork twice.
The pre-approval is usually the first step in the journey. A pre-approval is a no cost, no obligation simple and quick process to help you know what to expect for payment, cost, programs and price ceiling. This can typically be done with a 10 to 15 minute phone call or an online application which will provide basic income and asset information and we will do a credit check. Once the pre-approval is complete there is no rush to buy – we can simply update this application down the road whether it be months or years and get you pre-approved again in seconds if you don’t end up buying right away.
2. Property Search
As you start seeing properties that interest you online or with a Realtor I encourage my clients to reach out and provide me the address. That will allow me to send a custom tailored spreadsheet with market rates so you can get a real sense of cost. I am able to show different mortgage programs, as well as different prices to help you figure out what to offer along with different down payment choices so you can make the right decisions. Once you decide to make an offer I will send you an updated pre-approval letter to match the offer you are going to make to present with the offer and deposit. I also sometimes follow up with the listing agent to let them know about your credentials so they understand your strength as a buyer.
3. Accepted Offer
Once the offer is accepted, the loan application gets officially submitted. If I haven’t already, I’ll then send you an email outlining the list of documentation required for approval and the instructions for safe and secure uploading of documents. You would typically also order an inspection (consult your Realtor for help with this). Our bank orders a 3rd party appraisal once we confirm the inspection is satisfactory.
4. Application In-Process
At this point you are officially in process and have begun uploading your income and asset documentation to us and electronically signed your loan disclosures. Once you have completed the entire list of required documentation and we have obtained the signed purchase and sale agreement the file moves from processing to underwriting. The underwriter’s job is to review everything you have submitted, and compare that to the loan application we submitted and issue an approval. Typically the underwriter completes their initial review and sends a list of questions and or additional document requests which we will request from you. After you provide the follow up documents and the underwriter reviews and approves the items they sign off on the loan for commitment. We then email you your loan approval (commitment letter) which allows you to tell the seller of the property you have satisfied the financing aspect of the transaction.
5. Pre-Closing
Within 10 days of closing the bank will do a “soft” credit analysis to determine if you have obtained any new credit or had any credit inquiries since the start the of application. We will also reach out to all employers and confirm that you are still employed. The bank will then send a closing disclosure or “CD” to you providing you with all pertinent loan information such as rate, closing costs, money due at closing. This form will need to be signed electronically by you, exactly like the upfront disclosures, and by law this must be signed at least 3 days before closing.
6. Closing
The closing agent you are working with from the beginning of the process will reach out and advise you of the closing details such as:
the amount of a check or wire needed for closing, as well as the time and location of the closing which is agreed upon by all parties in advance. You will also be reminded to bring a copy of your license to the closing table. The actual closing takes about an hour or less. You might also do a walk through the home the day before (or morning of) closing to make sure you are satisfied with the condition of the property before signing the papers.
7. Post Closing
After closing you will be receiving a mortgage statement from the bank. The first mortgage payment is typically not due until the month following the closing. So Closing on March 28th for example you would not make your first payment until May 1. The bill will not come in the mail until the last week of April (or just about a week before the payment due date). This will all be laid out in the closing documents but because of the sheer mass of paperwork it often gets overlooked. You typically will not setup auto payment until after the first mortgage is paid because if the loan is going to get sold it will likely happen right upfront and you don’t want to have to fill out the paperwork twice.
