Understanding the loan process is essential when working towards obtaining a mortgage.
1. Pre-Qualification
Meet with your mortgage professional and review your income, debt and credit profile. Make sure to bring “The Big 5”: Most recent 30 days paystubs, Last 2 years W2s, Last 2 years tax returns with all pages/schedules, All pages of 2 month’s most recent bank statements, Photo ID. With this information, and a discussion identifying what monthly mortgage payment you would be comfortable with, your loan officer can get your pre-qualified.
2. Finding YOUR Home & Making the Offer
Provide your Realtor with the specifics of what you are looking for and then enjoy the hunt! Once you find what you are looking for, you and your licensed Realtor will put together a formal contract to the Seller and provide Earnest Money.
3. Your Offer Was Accepted… Now What?
We will provide you with disclosures, including the “Intent to Proceed” so that we may order the appraisal. Additionally, we will give you a list of items needed in order to process your loan transaction. Our in-house processing team will work with you on the following: Open Escrow/Order Title, Order Verification of Deposits, Employment, 4506 etc… and may request any supporting documentation not yet received. Your licensed Loan Originator will be in touch with you regarding locking your interest rate.
4. Inspection
Depending on your loan type, you may opt out of this step. However, potential homeowners have the right to have an inspector go out and inspect the property for any problems such as termite, water damage, or potential safety hazards. In some cases, you may request repairs to be made before finalizing the sale.
5. Underwriting Review
Work with your Real Estate Agent to discuss the items (if any) discovered on the home inspection and negotiate who will pay for those repairs. The loan conditions will all be sent to Underwriting for review.
6. Closing Department
Once all loan conditions have been reviewed and signed off by Underwriting, the loan package is sent to our in-house closing department to prepare the Closing Disclosure and gives you THREE days to review it.
7. Doc Preparation
Next, doc preparation will take place and will be sent to the Title Company you have selected. The title company will contact you to schedule your closing. Make sure to bring your Photo ID to your signing.
8. Funding
Once the sign loan documents have been returned to our Funding Department, a final review will be performed. Next, our Peoples Mortgage Funding Team will wire the funds to title.
9. Recording
When confirmation of the recording comes through, the title company will issue a check to the seller and the keys are all yours. You can MOVE IN!
For more information about mortgage loans and financing, read our FAQ and mortgage glossary.
