SummaryNavigating the mortgage process can be daunting, but understanding each step can help you move confidently toward homeownership. Here’s a breakdown of the key stages in the mortgage process, from pre-application to closing. |
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Pre-Application |
This stage involves gathering basic information about your income, debts, and assets to determine your home purchase readiness. You will also complete the Loan Application (aka 1003 or URLA) to complete the application process. |
Pre-Qualification |
Pre-qualification is an informal step where you provide a lender with your financial information. Realfinity will estimate how much you can borrow, helping you understand what kind of mortgage you may qualify for. |
Pre-Approval |
Pre-approval is a more formal step in the mortgage process after submitting a complete mortgage application. Realfinity will review your financial documents, such as credit report, pay stubs, tax returns, and bank statements. The lender also performs a hard credit check. Once pre-approved, you’ll receive a pre-approval letter outlining the specific loan amount for which you qualify. This letter strengthens your position when making home offers, showing sellers you are a serious and qualified buyer. |
Submitted to Processing |
Once you’ve found a home and your offer has been accepted, your mortgage application is submitted for processing. During this stage, the lender verifies all the information your application provides. This includes verifying your employment, income, and assets and ordering an appraisal of the property to determine its value. |
In Underwriting |
After processing, your application moves to underwriting, where the lender assesses the risk of granting you a loan. The underwriter reviews all your financial documentation, the property appraisal, and other relevant information. This step is crucial, as it determines whether your loan will be approved. |
Conditional Approval |
You'll receive conditional approval if the underwriter finds everything is in order. However, conditions may still need to be met before the loan can be fully approved. These conditions could include providing additional documentation or clarifying specific financial details. |
Final Approval |
Once all conditions are satisfied, your loan receives final approval. At this point, the lender prepares the final documents, including the Closing Disclosure, which outlines the terms of your loan, the interest rate, monthly payments, and closing costs. |
Closing |
Closing is the final step in the mortgage process. You’ll meet with your lender, real estate agent, and possibly a closing agent to sign all the necessary documents. Once everything is signed and the funds are disbursed, the keys to your new home are handed over to you. |
Congratulations! |
With the closing complete, you are now the official owner of your new home. Congratulations on successfully navigating the mortgage process! |
Each step is critical in ensuring that your mortgage is processed smoothly and that you can confidently move into your new home. Understanding this timeline, you can better prepare yourself for the journey from application to closing.