The mortgage process — from pre-qualification to closing.
The mortgage process —
from pre-qualification to closing.
Buying a new home is one of the most exciting and life-changing events many of us will ever experience. it’s important that you be well prepared and understand the steps involved in getting a home loan — and we’re here to help. By understanding the mortgage process, and the requirements for everyone involved, you’ll be well-equipped to approach this new chapter of your life with confidence.
| Pre-Qualification Pre-qualification is an informal way of determining how much you may be able to borrow for the purchase of your new home. Some things to remember about the pre-qualification process: |
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| • | Can be conducted over the phone, online or in person. |
| • | You’ll need to provide information about your income, your debt, and your available cash for closing. |
| • | You’ll then receive a pre-qualification letter, outlining the terms for which you currently qualify. |
Loan Application At time of loan application, your loan officer will help you choose a loan program, and when you decide the time is right, will lock-in the current interest rate for that particular product. |
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| • | You will sign forms authorizing your loan officer to verify your information such as employment, account balances, rental payment history, and other credit references. (You may be asked to provide supporting documentation.) |
| • | You’ll also receive certain disclosures about your loan, such as the Good Faith Estimate (GFE) and the Truth in Lending (TIL) statement. |
| • | Once you acknowledge receipt of the TIL and GFE, your appraisal and credit report fees will be collected. |
| • | Be sure to ask your loan officer to clarify anything you don’t understand. |
| Loan Processing During this phase, a mortgage loan coordinator or processor will be assigned to assist with the processing of your loan and will be your main contact. |
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| • | Third-party services, like appraisal reports or flood certifications will be ordered, and the verification request forms will be sent. Please keep in mind, it may take some time for to receive these completed items. |
| • | Throughout the processing of your loan, you’ll receive communications from us indicating whether or not additional documentation is needed. |
| • | During this time, you are encouraged to shop around for homeowner’s hazard insurance. This insurance is required whenever you borrow money to purchase a home. |
| Loan Closing Prior to closing, you will receive a HUD-1 Settlement Statement which itemizes the costs associated with the settlement of your loan. |
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| • | Your settlement agent or attorney will notify you of the amount of cash you will need to bring to the table; you will need to either bring these funds in the form of a cashiers or certified check or have the funds wired. |
| • | Closing usually takes place in the office of the settlement agent or attorney, where they will review all of the final documents before you sign them. |
| • | There are many forms that you are asked to sign and understand at closing — so be sure to ask questions if there’s something you don’t understand. |
You will then receive copies of the closing forms and the keys to your new home.
Congratulations, you’re now a homeowner!
Ricardo Cobos is the Raleigh Mortgage Guy. Call me today with your questions at (919) 559-3384 or email me.
Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183