Thank you for visiting my website. I've tried to compile resource links here for your convenience that will enable us to work together more smoothly through the mortgage process. Below is a step by step guide to walk you through the mortgage process. This website is also designed to allow you to come back and skip to these steps by clicking the appropriate tab.
Outlined below is a Four Step Process needed to have your loan fully approved. I’ve also included a description of potential out of pocket expenses you may incur. The more information you can provide upfront, the more timely and successful our process will be and the more accurate my feedback. Please be open and forthcoming with me about your special needs and circumstances. Your help and cooperation is greatly appreciated.
Step One - Application
The mortgage loan application is a way for us to collect your personal information, 2 year residence history, 2 year employment history, and to collect your responses to underwriting required questions. You may select, "I do not wish to provide this information" when asked Government monitoring questions about race and gender, however, please be aware that if you don't respond that I must guess and make a selection on your behalf.
Step Two - Credit
Part of the mortgage process is pulling your credit and analyzing your credit score and credit history.
Here are some additional points of interest regarding credit:
- To avoid telemarketer phone calls, you must opt out BEFORE your credit is pulled by going to https://www.OptOutPreScreen.com
- I have found that the mortgage credit score is approximately 20 points lower than what consumers tell me their online credit monitoring services are telling them.
- While some programs are more flexible than others, most require two to four years of good credit AFTER significant events like bankruptcy or foreclosures.
- A "Soft Credit Inquiry" is a credit inquiry that does not show on your credit report and therefore doesn't impact your score. Sometimes, a soft credit inquiry is an option to explore mortgage loan options, however, a standard or "Hard Inquiry" will be required prior to closing a loan. Differences between the soft inquiry and hard inquiry can impact your loan approval.
Step Three - Gather Documents
You are NOT required to provide income and asset documentation prior to receiving mortgage related disclosures including but not limited to a LOAN ESTIMATE. However, several documents are needed prior to submitting your loan to underwriting for a final loan approval. Supplying us with the listed information upfront reduces loan processing time and improves your ability to obtain loan approval.
For convenience, the "Required Documents" tab has a list of documents required to complete your file and submit your loan to underwriting for a final approval.
You may text, fax, or upload documents with the mortgage application portal, or you may send documents via a secure email.
Step Four - Disclosures
Upon receiving your loan application and pulling your credit, Federal Law requires that we send you mortgage related disclosures.
URGENT: These disclosures MUST be signed by ALL Borrowers before we can process your loan or submit it to underwriting. Signing these early disclosures does not commit YOU to the terms contained in them. It does bind US and/or LENDER to certain terms of the disclosures.
Before you can sign your final loan documents, a final set of disclosures called the "Closing Disclosure" of "CD" will be sent to you. It is important that this disclosure is signed timely as Federal Law requires that we wait three days once SIGNED before we can allow you to sign your loan documents and fund your loan. If not signed timely, we have to mail them to you and wait even longer.
Most of the time all disclosures are sent to your email for electronic signature.
Special Notices
What Happens Next: Once we have completed the four steps above, property reports are ordered and your loan is submitted for a mortgage underwriter. The underwriter reviews your credit, income, and the property reports. Based upon the underwriter's review, the underwriter may issue one of the following:
- An Approval subject to receiving additional items. We call these additional items "conditions" of the Approval. Once all conditions have been received and signed off, the underwriter will clear the loan for closing. When the file has been Cleared To Close, your loan documents are ordered and a Closing Time is scheduled.
- A loan Denial. This means a loan could not be approved as submitted. This doesn't necessarily mean there are no mortgage options for you. It could mean that you may need to apply for a different loan program or restructure the loan to meet underwriting criteria and resubmit for approval.
- Loan Suspension. A loan suspension means that the underwriter could not make a decision as submitted and needs additional information before a decision for loan approval or denial can be made.
At Closing: Be sure to bring 2 current forms of identification to the Closing. Sometimes the underwriter will ask that you bring additional items to closing like a recent pay stub or evidence of homeowners insurance. Be sure to bring with you all those items we have asked you to bring. Funds required for closing will need to be wired prior to or shortly after closing. Unfortunately wire fraud has become a serious problem. ALWAYS verbally review and confirm written wiring instructions BEFORE sending funds.
Team Roster & Software: You will be provided with contact information for my loan processor and staff. You should receive communication from a loan processor by text, email, or phone. It is important to me that a member of my team is available to you. Please call me or one or a member of my team with any questions or status update requests. Also, to enhance our communication and streamline processing functions, we use various software mediums that may email or text you. Some of these require that you opt in in order to function properly. Our lenders also use email or text notifications and software to send status updates or to request electronic signatures on required disclosures. If you are ever uncertain if a communication you've received is from us, PLEASE contact us before responding.
Out of Pocket Expenses: While many expenses are not due until Closing, you may expect certain out of pocket expenses up front. Some of these if paid upfront may be reimbursed to you when your loan closes. As your Loan Officer, I know which apply in your specific circumstance and will go over this with you in more detail.
Sometimes I'm asked why certain lenders don't charge for things like appraisals and credit reports and others do. There's an old saying that goes, "there's no such thing as free lunch." I have found that many times those who do not charge for fees upfront often make up for those fees on loans that don't close by charging higher fees on the ones that do close, while many companies that require payment of those items up front offer better loan terms at closing. That of course isn't always the case, but seems to be true much of the time.
“Out of Pocket” expenses MAY include:
- Credit Report
- Appraisal – paid upfront. Sometimes reimbursed at Closing.
- Home Inspections, Termite Inspections, and other property related reports - Due at time of service.
- Earnest Money (purchase transactions) – amount negotiated between Buyer and Seller. Credits toward down.
- Down Payment (purchase transactions) – determined by loan program. Due at Closing
- Closing Costs/Other – Sometimes included in the loan or paid for by Seller. Reports and costs NOT included in the loan balance or paid for by the Seller must be paid for at Closing.
