Mortgage 101: The Basics of Mortgage Financing
What are the basic steps of the home loan process?
1. Get pre-approved first. It is tempting to look for a home before you start your loan. But a little bit of patience up front, will save you time — and potential heartache — if you first get your mortgage pre-approval and know exactly how much you can afford. Find a Mortgage Loan Originator.
2. Put in your offer. After you find a home and put in a sales contract, your Mortgage Loan Originator will finalize your loan application. You will be asked to submit any additional documents needed for your loan.
3. Get the home appraised. The property appraisal — determining the home’s value — is ordered.
4. Shop for homeowner’s insurance. The loan is submitted to the Underwriter while you shop for home insurance.
5. Final conditions met. The loan is conditionally approved by the Underwriter and the Closing Disclosures are sent to the borrower.
6. Approval to close. Your loan is approved and the closing documents are ready for signing!
7. Congratulations! You are now a homeowner!