Our Mortgage Loan Process

We understand the complexity surrounding the mortgage loan approval process and the confusion it may create in the minds of the borrower.  Here’s our 5-step guide to help you navigate your way and get your loans processed with relative ease.

Step 1: Start Application & Get Pre-Approved

Fill out Fannie Mae form 1003 (Uniform Residential Loan Application) containing details of borrower's assets, liabilities, debt and income, the purpose of the loan, employment-related information, and any other information that a financial institution may require. Once submitted, we review your application, run a credit report and determine your debt to income ratio. From there, we'll provide you with a pre-loan approval letter to proceed further.

Step 2: Find Your Property & Open Escrow

After your pre-approval is done, you're in position to go house hunting. This process usually involves a real estate agent in between who makes an offer for the available properties in your budget. A real estate agent will also open an escrow account (an account maintained by a trusted third-party) with the seller, in which, an earnest amount of deposit will be collected from you. At this point, the transaction is considered to be in escrow, and no party can touch the amount until the mortgage loan gets cleared by the financial institution.

Step 3: Property Information

Though you have found the property, you must ensure the validity of the legal title to the property, its physical condition, and other factors attached to it. Usually, hiring a professional to conduct the home inspection is a viable idea, as they can assist you with the ins and outs of the property. Make sure that you have done a complete background check of both property and the owner before proceeding with your buying decision.

Step 4: Finalizing Loan

By the time lender does a formal review of the borrower's application and if they are satisfied with the legality of the documents submitted by you, they will grant you a conditional approval. Though before moving towards closure, the loan officer will have to take care of the following aspects.

Lock Rate - It is the mortgage interest rate at which your loan is locked. The rate fluctuates every day in the market, and depending on the time of dealing between the GRF and you; they will secure the interest rate for your loan.

Lender Conditions - At this stage lender will issue you the funding conditions and a necessary time gap before the final closure for you to go through the entire document.

Step 5: Signing & Closure

Once you have reviewed the document issued by the lender and agree to the lending conditions, it is the time when the home loan approval process nears its completion. In the closing meeting, you will only have to sign certain documents to complete your purchase. Once all the formalities are taken care of - the lender will transfer the funds to the escrow account, and you will be good to go!

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