How the Loan Process Works?
We know that buying a home and getting the financing for it has this stigma that it is a dreadful process, but here at Old Republic Mortgage we pride ourselves in making the process as easy and most convenient for the client. During this process we do all the heavy lifting so you can focus on your life rather than your mortgage loan.
We break down this process into four main steps for you.
Step One: Decide how much you can afford.
There are a couple of factors to consider when determining this amount. What monthly payment would make you most comfortable? What is the maximum you can borrow from a lender, given your income and credit history? Using our mortgage calculator on our home page is one way to determine your monthly payment amount. After a short conversation with you, we will be able to help you run different scenarios after asking a few questions.
Step Two: pre-qualify for you loan
This is where the process really begins. The mortgage loan advisor you select will be your guide through the home buying process. During this process, you’ll supply information on your employment, assets and residence history to your mortgage loan advisor. An experienced and knowledgeable mortgage loan advisor will help you review your overall financial picture, discuss your financial goas, and determine what homeownership looks like for you. Your advisor will then help you map out a plan to get you to the finish-line and into your new home. One of the most important reasons to team up with your mortgage professional before you begin the process of shopping for a home is to obtain a pre-approval. A pre-approval is part of the official loan process where the lender provides you with a letter confirming the specific loan amount you can expect to be approved for.
Presenting a pre-approval letter along with your offer when you find the home of your dreams will allow you to make the strongest possible offer. Sellers will see that you have begun the mortgage process, and that a lender has agreed to give you the amount you are offering, which can give you a competitive advantage over other potential buyers.
Step Three: Apply now! It’s easy
When your offer has been accepted, it’s time to move forward with your mortgage loan process.
Now you have the information that the lender needs to move your loan forward, such as the property address of the home you want to purchase. Your mortgage advisor will help you update and complete your loan application so that it can be submitted for final underwriting review and approval and walk you through the rest of the loan process.
Please not that before your loan gets final approval, you may receive a list of closing condition that need to be met. These conditions can include verification that your employer is current, and proof that you have obtained homeowner’s insurance, and any other items as requested by the underwriter. Once closing conditions have been satisfied, the underwriter issues a clearance and your loan is fully approved.
Buying your first home should be an exciting experience. We can help you keep it from being overwhelming on. Request a home loan quote today.
Step Four: Funding your loan
Your agent selects an Escrow and Title company to handle the “funding” stage and closing of the sale. We will be in contact and coordinating with the company selected to ensure all of the Documents required are in order. Once this has been completed, we will work with the company to set a day for signing at the closing company and a closing date. Since we do the heavy lifting at this stage, you will have plenty of time to pick out that new paint, coordinate the movers, and focus on the last-minute details for your move into your dream home.
That was simple. Answer a few questions, provided details, apply, and just like that you are in your new home sweet home!