Once you submit your loan application, you will experience several stages of the loan process before your loan can get approved.
A team of professionals will begin working behind the scenes to organize and review your documents after your loan application is submitted. This team is required to conduct a thorough audit of your finances and paperwork to complete the loan.
Here are a few of the key stages:
Loan Estimate: Within three days of submitting your application, your home loan advisor will provide you with a loan estimate. This is a document that details the loan you've applied for and is a summary of what your loan will look like if you decide to move forward.
Processing: Once you decide to move forward in the homebuying process, your application is assigned to a processor who will check and make sure that all the necessary paperwork is present. An appraisal is also ordered on your prospective property.
Appraisal: When the appraisal is ordered, a licensed third-party will evaluate the property to ensure it's worth the sale price. The appraiser will look at the home's condition, age and size, and then will compare the property to other home sales in the neighborhood and consider the replacement cost of the property.
Underwriting: Once the processor has compiled a complete loan file (the application plus all the supporting documentation), the underwriter will review the application in detail to make the final decision to approve or deny the mortgage loan. This process includes reviewing your employment history, credit history, and the appraisal report. The underwriter also ensures that the mortgage meets current loan product guidelines. It is not unusual that you may be asked to provide additional documentation.
Approval: Once your application is approved, you'll receive a loan commitment letter. This letter outlines the details of your loan, including the amount being borrowed, the interest rate, and the term or repayment period.
Closing: After you receive your loan commitment, the final step is to close on your home!
Speak with a Home Loan Advisor at GO Mortgage to help make the homebuying process as smooth as possible.