What is the first step to getting a mortgage? That’s easy, deciding to buy a home! Once you have done that knowing what to expect and identifying some possible road blocks will help you have confidence throughout the Mortgage process. With that said, our mortgage bankers are here to guide you along the way, answer any questions you have and curtail any fears that arise—you don’t have to experience the mortgage process alone!Before you begin searching for your home, you will want to call, visit us online, or go to your local Stockton Mortgage office to prequalify for a loan. This process is important because you will know the price range for your home and what kind of interest rate to expect. Plus, it is free, easy and takes less than 24 hours!
Once you are pre-qualified, it’s time to decide what kind of home you want and where you’d like it to be located. Your realtor will take your needs and wants into consideration then search your desired area for your perfect home. When selecting your realtor, make sure you find someone who listens to you and understands your needs
After you have found the home that you want, you will sign a purchase agreement with the seller of the property. It will include your offering price, the list of possessions to remain with the house, and your requested closing date. Then you return to your mortgage banker to complete your loan application. This is a good time to start, if you haven’t already, to begin organizing some important documents that your mortgage banker will soon need. Some of the basic documents that your mortgage banker will need include:
- Tax returns from the past two years
- Two most recent pay statements from your employer (at least 30 days of earnings)
- Bank statements from the last two months
- Driver’s license and other form of identification (ex. Social security card)
- Asset verification (bank account numbers and balances)
- Debt verification (information on debts such as car loans, student loans, and credit card debt)
This is a partial list of items that are usually required to begin the mortgage process. Download the full checklist here.
It is possible, however, that your mortgage banker may request additional documentation. Once you provide the required information, you’ll receive a Loan Estimate. A Loan Estimate is basically an estimate of the costs of buying your home; it lists all fees paid before closing, closing costs and any escrow costs you will provide when purchasing your home.
In an effort to get your loan approved as quickly as possible, the processor will organize and validate your loan documents to ensure they meet the loan standards, and that no additional documents are required for the underwriting process. There are situations that cause complication in the documentation phases of loan processing, you should be prepared to provide additional documentation. It is important to be prompt in supplying additional documentation, as this will often determine the amount of time this process will take!
After your documents are processed, the underwriter will take an in-depth look at the documents to assess your qualifications to support a mortgage loan. They will look at your employment record, your sources of income and your assets, and analyze your detailed credit report. This is the final documentation phase, so your mortgage banker may ask you to provide additional documents. Like processing, the timeliness of this phase is largely dependent on your response to your mortgage banker’s documentation requests.
As Stockton Mortgage processors and underwriters work to get your loan approved, your mortgage banker will order an appraisal. The appraisal is a mandatory part of buying a home. The appraisal will inform you and your mortgage banker of the home’s current value and your mortgage banker will base your loan amount on the lesser of the sales price or appraised value. Home Inspections are optional and only you can determine if the report is worth the cost. Additionally, this is the opportunity for you as the buyer to order a home inspection. This step is voluntary but recommended. The home inspector will assess the condition of the home including the roof, exterior, electrical and HVAC systems, and even the appliances.
It is very important that after you get approved for a loan, it is important that you do not apply for any new credit or allow anyone to pull your credit report. Prior to your closing, Stockton Mortgage will pull your credit again to ensure it meets requirements; because of this, any new credit inquiries could nullify your loan’s approval and you would have to start all over again!
Once your loan is approved, the appraisal has come back and you are satisfied with outcome of the home inspection results, then your closing day is scheduled! Three days before your official closing, you’ll receive a Closing Disclosure that will detail your final closing costs – so there should be no surprises when you make it to the closing table. At the closing table you will sign the documents that make you the official owner of your new home! Then it’s up to you how to celebrate: Champagne? Confetti? Pizza? You pick! To get started in your mortgage process, contact one of our loan officers today!
