What happens after pre-approval*? Words like underwriting, insurance premiums, and closing begin to pop up in conversation, and you might find yourself wondering what all these terms mean. Today, we’ll be walking through the loan process step by step. Mortgages don’t have to be confusing! We believe homebuyers should know what’s going on through the lifecycle of their loan.
The Application Process: Pre-Approval and Beginning Stages
The first step is getting pre-approved. Pre-approval for your home loan considers your household income and payment history before determining how much of a loan you qualify for. Online pre-approval applications like ours have become a simple and secure way to qualify.
After approval, your mortgage lender will create an account for you, usually online. This online account is an easy and convenient way for your lender to communicate with you on the progress of your loan. Through this account, they can share updates on the progress of your loan, send you documents that need signing, and communicate next steps and what to expect during certain stages of the loan process. Your loan is now considered “opened.”
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Processing and Underwriting
Your loan is reviewed by a Processor, who inspects your loan application and ensures that your lender has all the required documents for your loan. Processors organize your application and check for accuracy, making sure your loan process is as smooth as possible.
Next, an Underwriter verifies all aspects of your loan application and the loan program you’re applying for. Underwriters perform a detailed credit analysis, reviewing your current financial situation and your loan program’s specific requirements.
During the Processing and Underwriting stages, your lender may ask for additional documentation needed to help verify your loan’s requirements. You may have multiple requests to provide documentation, so it’s a good idea to keep a folder of all your files together. Creating a smooth process with the Processor and Underwriter will help your loan paperwork flow more efficiently, bringing you closer and closer to closing day.
Final Stages
At this point, you are approaching your scheduled closing date and your lender is checking off the final items from their list. This includes a final verbal verification of employment and a soft pull of your credit to check for new inquiries. If all requirements are verified by the underwriter and there aren’t any other issues, your lender will issue the final loan approval.
Closing Process
You’re almost there! At this point, a title company verifies the real estate title is legitimate and will issue insurance for the property. Your lender works with the title company to give you all the final details you need, such as the final closing disclosure, what to bring to your closing, and how much money is needed at the closing.
Closing
This is the day! Make sure you have your government issued ID and your celebratory champagne! All that’s left is signing the final loan documents and receiving the keys to your new home. Congratulations – you’re officially a new homeowner!
There are a lot of steps involved in securing your mortgage and closing on your home. Check out our blog for helpful articles on what documents are needed and when, and what to do and NOT do before, during, and after the loan.
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Why RMC Home Mortgage?
RMC Home Mortgage, LLC works directly with Maronda Homes for fast, reliable mortgage services. We offer a wide array of competitive mortgage products with experience in every area of residential mortgage lending. As a dedicated mortgage lender for Maronda Homes, we work directly with your home purchase team to streamline the lines of communication and ensure a smooth construction and financing experience.
Buying a home is one of the most important financial decisions you will make. Understanding mortgages and the home buying process can help make it less stressful, and so can partnering with a mortgage lender you can trust. At RMC Home Mortgage, LLC, we’re dedicated to helping home buyers finance their dream home. All information presented is for educational purposes only and not intended as financial advice.
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*“Pre-Approval” means an automated underwriting system approval (conditional approval) based upon credit information supplied by applicant and subject to RMC Home Mortgage, LLC’s review of loan documents. Not all applicants will be approved.
