Even the most experienced homebuyer can find the home mortgage process hard to understand. By working hand-in-hand with everyone who is responsible for the building process, your Loan Consultant is kept current; and goes farther to make sure you understand everything you need to know about this important transaction.
Want to start right now? Here's a step-by-step explanation of the home mortgage process that most lenders follow. Please remember that while there is a lot of information here, your Mattamy Home Funding Loan Consultant will make it easy for you.
Step 1: Prequalification
Before the actual home loan process begins, we gather information about your income and liabilities and figure out how much you can afford to borrow. There are many different programs available, which can result in different prequalification loan amounts. We'll help you pick the ones that best fit your situation. We will also order a credit report and run your home loan through an automated underwriting system.
Step 2: Loan Application
Once you're prequalified we will prepare a formal loan application, verify employment, income, assets, and gather any other documents needed for processing. This process may be done with your Loan Consultant face to face, email or certified mail.
Step 3: Processing
We review your credit reports and verify your liabilites and payment histories. If there are late payments, collections for judgments or other concerns, we get a written explanation from you, which may clear up any of these types of issues. We order the appraisal and review for value. Title insurance and homeowner's insurance is ordered. A complete package is put together for final approval.
Step 4: Underwriting
Underwriting is where we make sure your home loan package meets all lender requirements. At this point we have usually gathered all the information we need. In some instances, however, we may require additional information and will contact you quickly to make sure approval happens on time.
Mortgage Insurance Underwriting
If your down payment is less than 20%, all lenders require Private Mortgage Insurance (PMI) to insure the loan in case of default. PMI is typically paid monthly but can sometimes be financed in with your loan or paid upfront at closing.
Step 5: Closing
Your home loan has been approved, the package completed and a closing date and time are scheduled. Construction of your home is complete. The closing typically takes place at the closing attorney's office, or the title or escrow company.