Understanding the Mortgage Approval Process

Do you seek to understand the mortgage approval process? Are you a new homebuyer? Professional Mortgage Solutions in Rego Park, NY is here to walk you through the various steps of the mortgage closing process. While your experience may not mirror the steps below, we hope you find this guide helpful. You are always welcome to contact our team if you need further assistance. Below is an outline for a typical mortgage approval.

Step 1: Mortgage Pre-Approval

When you shop for a new home to purchase, you must get initial approval for financing. It is vital that you are reviewed to see if you are an ideal candidate for a home loan. Some home purchase markets are highly competitive.

Begin by submitting your income, assets, and debts for review. The lender can inform you how much they may be willing to loan you, and provide you with a pre-approval letter to take when you submit a bid on a new home. This allows you to refine your search to homes within the range that you can afford.

Step 2: Searching for a Home

In this phase, you may desire to work with a realtor. It is important to review the neighborhood stats and property values for the home you desire to buy. Some find that good school districts will raise property values in the surrounding neighborhood. You will also want to check on local amenities and crime rates.

Before you begin searching, identify the essentials you need in your home and neighborhood. Include your ideal square footage and number of bedrooms. You may never find a home that includes everything you desire. Be sure to create a list of home needs versus wants. Then, shop around and identify homes that make a close match. Shop within your budget, since you will need to return a lender for ultimate approval on the home.

Step 3: Mortgage Loan Application

Once you have gotten the loan pre-approval and identified a home where the seller will accept your offer, it is time to start the official mortgage loan application. Many lenders use a standard application form at this point, called the Fannie Mae form 1003. Submit your application, read the application forms closely, and seek a professional team for assistance finding the right financing terms to meet your needs.

Step 4 & 5: Mortgage Processing and Underwriting

Once you submit the application, the lender will seek to approve and verify your financial information. An underwriter will evaluate and choose whether to accept the risk associated with your mortgage. Issues identified, if minor, will be sent to you for clarification. Be prepared to address any financial questions.

Once approved, your loan will enter the phase of closing. Numerous documents will be sent to the title company for review. You will need to read and sign many contracts in this phase and pay the associated fees. The disclosure documents should tell you the ultimate costs of the loan.

Professional Mortgage Solutions in Rego Park, NY is here to help you during the mortgage approval process. We welcome you to contact our office and get the process started today.