A mortgage can take anywhere from a few weeks to a few months to close, depending on the borrower's situation. It is important to understand the loan process when working towards obtaining a mortgage.
1. Pre-Qualification
Meet with your mortgage professional and review your income, debt and credit profile. 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. Pre-Approval
With the pre-qualification complete, your loan officer will now verify credit and require supporting documentation for both your income and assets.
3. 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.
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. Title Search
The Title Company will review the ownership history of the property you are buying and search for any liens against the property. All liens must be cleared prior to any transfer of title.
6. Appraisal
Once you are ready, an appraisal will be ordered on your property. This is ordered by the lender and the appraised value must justify the Sales Price.
7. Processing Review
A loan processor will put together all information pertinent to the loan application including the title report, appraisal, inspection if needed, income andasset documentation, as well as your credit report with any explanations included. With this complete file, your loan will be submitted for final underwriting review.
8. Underwriting Review
With all the information and supporting documentation gathered, the loan goes in front of one of our underwriters for full compliance review. This approval will be the final review before getting your loan closed.
9. Insurance Policy Formalized
At this point, it is important to finalize your hazard insurance policy with your insurance company. If the home is located in a flood zone, additional coverage may be required.
10. Doc Preparation
With a final approval and insurance policy, your loan processor will request your final documents to be prepared and sent to title.
11. Signing
Upon receiving the docs from Peoples Mortgage, the title company has additional documents that they prepare, and once those two are complete they will call you to arrange a time to sign your closing papers.
12. Funding and Closing
Once you have signed your documents at title, a wire for the amount of the loan will be sent from the lender to the title company. Upon receipt of those funds, the title company will record the purchase with the County Recorder.
13. Recording
When confirmation of the recording comes through, the title company will issue a check to the seller and you can MOVE IN!