Understanding the Six Essential Steps of the Mortgage Application Process
In general, the mortgage loan process involves Application Acceptance, Offer for Property, Loan Application, Loan Processing, Underwriting of the Loan, and Release of the Loan Amount, or Closing. There”s more to it, and we”ll get to that in a minute.
Every lender has its unique way of operating the Mortgage Loan Process. It's important that all the “boxes are checked” so the process can move forward without errors. It's a critical process for customers as well.
For the first time buyer, the process is filled with confusing and arcane terms and procedures. Even experienced buyers can be confused by the complexity of it all. For most applicants, there is a lot riding on a Mortgage Application Process, it can be a tense time for them and that adds extra pressure for accuracy. From the broker”s perspective, not being clear or complete on all the terms of the deal and the mortgage usually means that the deal falls through.
But a buyer, armed with the knowledge of the Mortgage Process because they were willing to do the homework, stands a good chance of getting a better deal on a purchase than an uninformed buyer who walks into the market like a lamb to the slaughter.
Learn and understand the Mortgage Loan Processing Steps. Avoid being one of those “lambs”.
- Mortgage Pre-Approval
- Home Hunting and Offer
- Loan Application
- Loan Processing
- Mortgage Underwriting
- Mortgage Closing
