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Mortgage Process
A step-by-step guide |
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Type |
Description |
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Step 1:
Qualifying you for a Mortgage
Loan |
The first step is to determine how much home can you afford? What price range home should you be
looking for? These questions are easily answered through a simple
pre-qualification process. The necessary pre-qualification
information is based on your current income and existing financial
obligations. From this, a determination is based on debt to income
ratios as to how much home you can comfortably afford. This
prevents you from spending time looking at homes for which you may not
qualify. |
Step 2:
Loan Application |
This is usually a face to face meeting with your mortgage loan
officer. You are provided with a loan application, a Good Faith
Estimate with an estimate of closing costs and required disclosures. |
Step 3:
Loan Processing |
The third step to your mortgage loan is processing.
After the loan application packet is completed, a "needs letter" will be
provided to you outlining the required documents necessary to prepare
your loan to go to underwriting. It is important to provide all of
the requested documents to assist the loan processor in assembling your
loan package for final "underwriting" approval. |
Step 4:
Underwriting |
The underwriter determines if the loan package provided by the loan
processor is an acceptable loan. Your loan is analyzed for four
important factors: collateral, capacity, character and capital. Once the loan is approved by
underwriting, you are now qualified to receive a mortgage on your new
home. |
Step 5:
Closing |
After the loan is approved, it is forwarded to the Closing Department to
prepare the documents to be signed at closing. These documents are
provided to the closing entity, usually a title company or a closing
attorney. Funds for closing are exchanged at this time, usually by
cashier's check, draft or wire to the closing entity. After the
closing documents are signed, the loan process is completed and the
buyer now owns a new home. |
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Carleen Wilson
Vice President of Mortgage Lending
Direct 763.691.8026
Cell 612.390.4078
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