Understanding the Mortgage Process

Since 1985, Joe Ennis has helped people find the best mortgage solution to meet their needs. 

To understand the mortgage process, you need to start by understanding the different types of companies that can be involved in the loan. Three types of licensed and regulated entities exist. You can apply for a mortgage with a mortgage broker, mortgage banker, or bank.

A broker will assist with the paperwork and arrange for the financing with a mortgage bank or bank. A mortgage banker and a bank are lending the money. In most instances, a mortgage banker or a bank might be making the decision on whether to lend you the money.

When to Apply for Your Mortgage

Once you have determined who you’ll be submitting the mortgage application to, the next step is determining when you should apply. For refinancing a mortgage, you will typically begin immediately. If the mortgage is for a purchase transaction, you may want to consider the timing of any home inspections and the attorney review period. In either situation, the loan officer should complete the mortgage paper work for your review and signature.

Completing the Application Package for Your Mortgage

The more complete the application is when you submit it, the easier it is for the loan to be processed. It will greatly assist everyone involved in processing your mortgage application if you supply the required documentation upfront. Click here for a list of items you will need.

Processing the Application for Your Mortgage

Once you submit the signed mortgage application, disclosures and any supporting documentation, an appraisal will be ordered. While the company is waiting for the appraisal to be completed, they will process the mortgage loan. Processing your mortgage loan consists of many steps, some of which are confirming employment, assets, getting copies of the tax returns filed with the government, and advising you if any additional items are needed to support or clarify the documentation that you provided.

Underwriting Your Mortgage Application

When the appraisal and any additional information are received, the mortgage file is ready for underwriting. The underwriter will make the final decision on whether the mortgage loan is approved. If approved, you will receive a commitment detailing any conditions of the approval. In addition, your settlement agent, who is either an attorney or a title company, will receive the commitment and closing instructions.

Your settlement agent will order the title insurance and will provide it to the lender. The underwriter clears any conditions and when the title insurance clears the review, you are ready for a closing! Your settlement agent will work with all parties to schedule the closing.

To discover what options are best for you, schedule a consultation with a mortgage loan officer, call Joe Ennis at (201) 538-1140 today!