08/31/2020: The Mortgage Application
This is the sixth in a series of videos and articles inspired by Mars Bank’s First Time Homebuyer live events. Sign up today for our free online first time homebuyer seminar.
What can you expect during the mortgage application process? Mars Bank wants to help you understand the home buying process. Here are the steps you will go through when you’re applying for a mortgage loan.
The application process should start with an initial strategy call with your mortgage loan officer. In this strategy call, the best thing for you to have prepared are questions to ask the lender. You should also expect the lender to do the same – ask you questions. This will help them determine what items you need during the mortgage application process.
It is important for the lender to explain your responsibilities as a borrower during the mortgage process and what the lender’s responsibility to you is as well.
The next step is the pre-approval application process. During this time, you will provide information to the lender. This includes income, employment, and asset document information. Your credit information will also be pulled. Getting the documents submitted correctly may mean a faster approval and you will be ready to confidently look for a new home!
Rates Are Locked
When you do find a home and enter a signed sales agreement, your pre-approval application goes live… it becomes a full application and everything moves into action. Your loan terms and rate is locked at that time. The lender may ask to update certain documentation depending on the length of time from pre-approval to sales agreement. When the formal application is created, you and your mortgage lender will sign the documents to make it official and submit it to underwriting.
Underwriting and Commitment Letter
An underwriter reviews and evaluates all the information that you provided and if necessary the underwrite will work with you and the mortgage loan officer to clarify information. Once this process is complete, the loan decision is made. Once the loan is approved, the title insurance process commences making sure that the property is free of liens and can become your property.
You will receive a mortgage commitment letter from the lender. This letter is letting everyone know in the process that your mortgage is approved and you’re moving forward with the transaction to closing.
At Mars Bank, we want to make the home buying and mortgage process understandable and convenient. If you have questions about the process or want to get started, contact Mars Bank today.
Considering a first home purchase? Sign up today for our free online first time homebuyer seminar.