The basic mortgage process is the following:
2. Mortgage broker will review the online mortgage application and pull a credit report on the mortgage loan borrower.
3. Mortgage broker will submit the completed mortgage application along with the credit report to the automated underwriting system ( AUS ) for results. Seeking an Approved Eligble.
4. Mortgage broker will issue a pre-approval.
5. Borrower hires a real estate agent and looks for home. Once he or she chooses a home, he or she will submit real estate purchase contract to mortgage broker and the mortgage process is ready to start.
Mortgage process; Processing
1. Mortgage broker will request mortgage documents such as two years tax returns, pay check stubs, 2 years W-2s, 60 days bank statements, bankruptcy papers if applicable, divorce decree if applicable, investment and retirement accounts, and other necessary paperwork.
2. Mortgage package is reviewed by an assigned mortgage processor and prepared for underwriting.
3. Mortgage package needs to be complete as possible to avoid delays.
Mortgage Process: Underwriting
1. Underwriter scrutinizes mortgage loan package and makes sure that everything is in order and cross checks the information listed on the mortgage application with the documents supplied.
2. Appraisal is ordered as well as other necessary inspection.
3. Conditional approval is issued.
Mortgage process; Conditional approval
1. Conditional approval is issued. The mortgage loan is approved contingent that all of the conditions issued by the underwriter can be met. Such conditions include letters of explanations on credit inquiries, bankruptcies, foreclosure, additional documentation, job gaps, address gaps, and reasons for prior bad credit.
2. Once all conditions are submitted, it is reviewed by the underwriter and if sufficient, it gets assigned to a senior underwriter. Senior underwriter double checks everything and once satisfied, he or she will issue a clear to close.
Mortgage process: Clear to close
1. A clear to close is issued when the mortgage lender is ready to fund the loan. The underwriting department coordinates it with the title company and prepares the HUD and itemization on costs, fees, and breakdowns of the funding.
2. A closing date is set and the transaction closes. Ownership transfers hands and the purchaser of the home is now the official homeowner and the seller gets paid.