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Getting A Mortgage Loan: Six Easy Steps

Although each loan application will vary slightly due to the individual borrower's situation, the basic steps are the same. Your mortgage loan professional will walk you through each of these steps and answer all of your questions as you go.

Step One: the Application. All loans begin with an Application that your representative will help you complete. You will probably have to look through your own paperwork for some of the information requested, but most of it is straight forward and easy to answer. You want to take the time to be sure that your information is accurate and complete. Be sure to use a working copy in case you make mistakes or have changes. Do not hesitate to ask your representative if you have any questions or concerns. We are here to help you complete the process as quickly but completely as possible. When you are finished, sign the application and return the original to your mortgage professional.

Step Two: the Appraisal. Next, you need to schedule an appraisal of the property. This should be done right away since completing the appraisal is a critical step to your obtaining your loan promptly.

Step Three: the Title. Once you complete your application, your representative will order your title work for your title insurance commitment. The title work is done by a title examiner who determines by examining the public records whether the title to the property is free of any outstanding liens or other encumbrances other than those that are being paid off by the loan, and some, like CC&Rs and utility easements, that naturally go with the property. Usually, you do not have to do anything because it is handled by the title insurance company that will close your loan.
 

Step Four: the Loan Documents. Your loan officer will request several documents after you have completed your application. It is important for you to get them together as quickly as possible. Here is a list of the most common documents requested, although there may be others in individual cases.
 

Step Five: the Loan Approval. Once we have your application, all documentation and the appraisal on your property, we will package your paperwork and submit it to the underwriter who either approves or denies the mortgage loan. Loan applications actually submitted are usually approved because competent and reputable mortgage professionals do not submit loans that do not qualify. Once submitted, the underwriter will grant either a conditional approval or a final approval. An underwriter's conditional approval is subject to additional documents or information before it becomes final or "clear to close."

Step Six: The Closing. Once the underwriter grants final approval, your mortgage professional will to schedule the signing of the closing of your loan. At the closing, the borrower will sign the promissory note and mortgage. In the case of a purchase loan, you will also receive a warranty deed and the the keys to your new house. For a refinancing, the borrower has a non-waivable three day right of rescission to look over the documents before the loan will be funded.