Beat the Clock: Understanding the Mortgage Approval Process
Buying a new home is an exciting time. It is fun to search for the perfect home in the best neighborhood for you and your family to put down roots. Once you find your new haven, you will need to pay for it. Only very few buyers can afford to pay cash outright for real estate, so most of us rely on financing to meet this need. The mortgage process may seem tedious, but it is critical to follow all the steps to ensure you can close on your new house with confidence.
Mortgage Approval Process Timeline
There are many steps involved in obtaining financing. When you understand the overall process, you are better equipped to handle your mortgage broker’s questions:
- Decide which broker to work with – Brokerages can shop around for the best rates and terms for your needs. Look for one that is willing to answer all your questions.
- Complete the application (1 day) –This step is where you provide financial and personal information. Your credit report will be evaluated as well. You will also have a better picture of your financial situation and how it applies to getting mortgage approval.
- Application review (1 day) – You will receive a checklist of documents you will need to supply that support your application. At the same time, your application will be reviewed to determine the lenders with the best rates and terms for your situation. A determination of the right kind of mortgage will also be considered, such as fixed rate, variable rate, or a second mortgage. If you do not have a property already picked out, then the process will pause until one is found.
- Lender underwriting (1-7 days) – Once all documents have been gathered, they will be sent with the application to the lender. Their underwriters will look over your creditworthiness, capacity to repay, collateral involved, size of your down payment, and additional conditions such as your employment, to determine if you are approved.
- Conditional commitment/approval (2-4 days) – Once all your information is reviewed and meets the lender’s guidelines, they will issue a conditional commitment to lend you the money for your real estate. It will also list any additional documentation needed, which will need to be gathered quickly. You will also want to review the conditions with your broker.
- Pre-closing (7-10 days) – Once all the conditions are suitably met, the lender will work with your lawyer to register a mortgage and transfer the title to you. You will meet with your attorney to sign the necessary paperwork.
- Closing – When the loan is funded, your new lender will transfer money to your lawyer’s trust account to be further disbursed to the appropriate parties. You will get the keys to your new home and begin life as a homeowner.
Work with a Mortgage Broker You Can Trust
Get started today and be on your way to finding the perfect home for you and your family. The friendly professionals at Axiom Mortgage Solutions can assist you through the application process and discuss the different mortgage options available to you.
Are you ready to choose a mortgage solution for your next piece of real estate? Have questions or concerns? Want to learn more? Axiom Mortgage Solutions can find the perfect solution for you. Contact us today.