The mortgage process can be an intimidating one but it doesn’t have to be. Primestone Mortgage is here to direct all of your steps to ensure a smooth and stress free closing. Our process is unlike any other in which we streamline the loan process and gather only the necessary documents needed to efficiently close your loan. Its important to be well prepared as a buyer and have all of your documentation ready for your loan officers review. Due to the mortgage meltdown in 2008, the mortgage industry has been strictly regulated and that makes it tougher on borrowers and lenders. To ensure the smoothest process here are some things to consider when applying.
Congratulations! you have decided you want to purchase a new home or refinance an existing home. In either case you’re taking the first step in creating a brighter tomorrow. Once you’ve decided to take this step, you should speak to a loan officer and ask questions about what documents will be needed, how much you qualify for, average interest rates, what programs are available for your specific needs, etc. Its important to remember that loan officers are here to help you achieve your homeownership goals so tell them everything about your situation (BK’s, foreclosures, properties owned, employment issues, etc.) Do not feel as though sharing this information will hurt your chances at obtaining the loan, instead it will help the loan officer package your file correctly for the underwriter to have the best chance to approve it. If you hold things back then its more likely they will come up later and by then it will be too late to fix.
This is where dealing with a seasoned loan officer is important. Most borrowers have stressful experiences because they provide too much documentation. Our loan officers know exactly what’s needed to get you an approval and not have an underwriter dig in your entire history. Of course these items will differ depending on the type of loan you decide to go with but typically you will want to have handy the following:
1) Loan application- this will need to be filled out in its entirety
2) Credit Authorization
3) Most recent 2 years W2’s
4) 30 days paystubs
5) 1 month of bank statements
6) 2 years tax returns (optional if you’re a W2 employee and mandatory if you’re self employed)
Once you’ve sent these items to your loan officer he will issue a pre approval and let you know how much you qualify for. This process is quick and usually takes a few hours. From there you will be issued a pre approval letter and you can officially go house shopping (we can recommend some amazing realtors if you don’t have one already) Once you find the home of your dreams you are ready to begin the loan process.
Once the loan officer submits your package we will release “Initial Disclosures” These are preliminary disclosures that educate the buyer on the type of loan they are receiving, the terms, rate, approximate fees, legal disclosures, etc. These will need to be signed by the borrower in order to send the loan to underwriting. In no way are you obligated to proceed with the loan by signing these disclosures and you can cancel anytime, risk free. Once signed the loan is sent to the underwriter for initial review (Process: 1 day)
The underwriter is the one who makes the decision on if your loan will be approved or denied. Our underwriters are extremely educated and know how to work the system to help each buyer get approved. Our flexible guidelines make it easy for the underwriter to come up to solutions should they see any problems in a borrowers credit profile. (Process: 2-3 days)
Once the loan is approved, your loan officer will reach out to you and request some documentation that the underwriter needs to see in order to issue a clear to close. These items include an appraisal, updated documentation, explanations to items in the file, etc. These items are usually easy to obtain and if you have any questions about a specific condition just ask your loan officer and he/she will guide you through it. Once all of these items are submitted the file will go back to the underwriter so he/she can clear all of their requested conditions. its at this time we usually lock in your interest rate and release your closing disclosure (final draft of your loan fees) (Process: 2-4 days)
CLEAR TO CLOSE:
Music to everyone’s ears. a Clear to Close is a term used to notify all parties that the underwriter has reviewed all of their requested conditions and they have signed off on all of them. your file is now ready to go to the closing department and your loan documents are ready to be issued (Process: 2-3 days)
After you loan documents are released its time to sign in front of a mobile notary. These signings can take place in your home, in our office or in escrows office. Its important to review these documents carefully as the numbers and information you see is set in stone and cannot be changed after the loan has closed. If you do see any discrepancies on the docs notify your loan officer right away. One way to help streamline this process is to ask your loan officer to send you a copy of the docs prior to scheduling an appointment with a notary so you can review all of the numbers and information. (Process: 1-3 days)
Once you sign the documents, they are sent back to our office and the loan is funded the next day (3 days later if its a refinance). Congratulations, your loan has closed and you are a homeowner.