the mortgage process
Pacific Lending Group Inc. No Comments

When you are purchasing a new home, there are several steps that you must follow before closing. While it may appear quite complicated and daunting to get a mortgage, a basic understanding of the overall process can make it easier. Following is a walk-through and tips regarding the mortgage process to get you started:

Getting Pre-Qualified and Pre-Approved

Getting pre-qualified and pre-approved is the first step to getting a mortgage. In the pre-qualification process, a mortgage lender will estimate the amount (the buyer), you can afford, as well as the amount the lender is willing to provide. The pre-approval process involves the lender preemptively committing to a maximum amount. Keep in mind that the pre-approval is nothing more than a speculative number, which means you can still shop around with various lenders before you commit.

Applying for the Mortgage

In this step, you will need to provide financial information to the lender. This includes bank statements, pay stubs, W2, etc. The loan adviser will find the type of mortgage loan that would be most suitable for your financial situation.

You will also have the opportunity to lock into a specific interest rate at this point. When the interest rate and loan type are finally determined, you will need to sign the required forms. You will also be presented with the Good Faith Estimate. The cost for the loan process is listed in this estimate.

Processing and Underwriting a Loan

The processing stage will begin once the application is completed. In this step, the lender will verify your financial status as well as review your credit reports. The property will also be appraised to calculate the final loan amount. The mortgage loan will be considered for final approval by an underwriter after this is settled.

Closing the Loan

Once the loan is approved by the underwriter, the date for closing is finalized. The title to the property is transferred to the new owner during the closing. Furthermore, a Settlement Statement is also provided. It is the same as the Good Faith Estimate, and it lists the charges and fees to the parties involved in the transaction.

Pacific Lending Group 

Do you have any more questions? Feel free to contact Pacific Lending Group at 954-227-4727

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