So you want to get pre-qualified in San Antonio?
You need to have at LEAST a 580 credit score and proof of 2 years of full-time employment or income.
Since there are many important steps throughout the process, knowing what stage you are in keeps you in the know all the way until closing. Gold Financial Services has been a leader in the mortgage lending industry for over 20 years. With offices in San Antonio, Austin, Dallas, Laredo, McAllen, New Braunfels and many other cities in Texas. They work hard to exceed the expectations of their customers.
What to Expect When Applying for a Mortgage
You found a home that you love! Congratulations! Now, how do you buy it? Most people will obtain a mortgage.
Brian Chunn from Gold Financial Services has an exceptional track record when it comes to finding mortgage loans for would – be homeowners.
There are many kinds of mortgages. There are fixed rate and adjustable mortgages, and balloon mortgages. There are private loans and Freddy Mac and Fannie Mae mortgages. There are VA backed mortgages. Each type of mortgage has its own characteristics and requirements. Brian can advise you on the details of each type of loan. And help you find the right one.
You will need some information to start with, to help you get going. This article should get you on the right track. So let’s jump in.
Regardless of the kind of loan you apply for, the process is, generally speaking, the same. There will be several steps involved in the loan process. You will be required to supply documentation along the way.
Step 1: Loan Origination
Properly speaking, loan origination is the process of originating a loan, which usually begins with a loan application and ends with funding the loan. However, loan origination is often used as a term to describe the initial steps of applying for a loan.
During loan origination, you will fill out a lot of forms. You will need to supply your legal name, your social security number, your marriage status, the names and social security numbers of all co-borrowers, and a list of all of your debts and monthly payments (usually over 6 months). You will authorize the lender to check your credit and employment status, including where you work, how much you make and how long you have been employed. You will also supply bank account numbers, how much you have in checking and savings, and a list of assets. You will also need to document any other income you receive if you want it to be counted for payment ability, such as social security or monthly commissions, for example. You will need to supply tax returns for each co-borrower. You will need to provide the property address (if known) and the payment price.
It may take time to gather your last few pay stubs or documentation of other income. Try to give yourself enough time to gather all of the information.
Once all of the information is collected, your loan officer will create the loan application. Then he will prepare it for review.
Before he does that, however, he will calculate your maximum allowable monthly payment. Using this information he can tell you what your loan amount will be. He will add that to your expected down payment and closing costs to tell you how much you can spend on your house!
Congratulations. Your initial loan application is complete.
Step 2: Processing
During this step, your loan package undergoes processing. Credit reports are ordered, employment and income verifications are completed and the appraisal is completed. Other inspections may also be required, and this is the time these would be ordered. The loan officer will do his best to ensure that everything necessary is present so that your loan has the best chance of being approved. The more carefully the package is reviewed, the better your chances are of a quick approval. Your loan officer may ask for more documentation or a letter of explanation if some of the details are unclear.
After your loan is reviewed it will proceed to underwriting.
Step 3: Underwriting
During underwriting, an impartial underwriter will review your application. The loan underwriters’ job is to ensure that the loan meets guidelines for risk. The underwriter may ask for (still more!) documentation while reviewing your loan application. He or she will calculate the buyer’s ability to pay, using a standard formula for that type of loan. The appraisal will be reviewed for accuracy and to ensure the property meets underwriting requirements. The size of the property, its location and allowed use, additional features such as a well or a pool are all carefully reviewed. This will give the underwriter further assurance of the value of the property. The underwriter wants to ensure that the buyer is able to make the payments. The underwriter also wants to ensure that if the loan goes into default, there is a good chance that the lender will be able to recover their investment from the property.
This period of time can be a nail-biter. There is not generally much communication at this stage. In fact, some loan officers are prohibited from communicating with the underwriters, to prevent influence. This is the waiting game.
Hopefully, one day soon, you get good news! Your loan application was approved! When can you move in?
Step 4: Closing
The process of obtaining your mortgage is almost done. Your loan officer has helped you put together a loan package and a whole lot of documentation. The underwriter approved it. Now the lender will begin the process of funding your mortgage. The lender will issue orders to the escrow officer. The property title insurance will be ordered. The funds will be prepared for disbursal to the seller or his agent. You will be expected to produce the funds for closing costs and down payment that was agreed upon in the contract.
After the loan has been funded and the final title guarantees are in place, the lender will release the funds to the seller and you sign papers. Some of the papers will be the final loan agreement which will include the principal amount, the monthly payment, the interest rate, and the other terms of the loan. This loan document is a contract which protects the lender’s interests and also the buyer.
Signing documents is the last step. After all of the documents are signed the title company will record the transaction and the property is yours.