In this video, Mark Feder, a Mortgage Advisor with Samuel Scott Financial Group, explains the process for getting a home loan, breaking it down into four easy steps. They are:
Closing / Funding
The first step of getting a home loan funded is the Loan Application process. During this phase, your Mortgage Advisor is collecting information from the buyer to (1) look at the borrower’s ability to repay, (2) identify how much they will be able to put down, and (3) the borrower’s repayment history. The home buyer will need to provide the advisor with income information (W-2’s, 1099s) to determine just how much the borrower will be able to afford, as well as determine their ability to repay.
The Mortgage Advisor will then review their assets (money in the bank, IRA, 401K etc.) to identify potential down payment sources. In addition, a credit report is used to look at the borrower’s repayment history (do they pay on time, do they have too much debt, etc.) This part of the loan funding process is typically the longest, and the home buyers will speak to their Mortgage Advisors a lot during this time period.
Once all of the documents are collected, the loan application will be sent to processing, which is the second step of the home loan process. At Samuel Scott Financial Group, the loan-processing department is actually located in-house, making it convenient and reducing time delays. The loan-processing department is very experienced, and will review all of the information and run an automated approval. They will come up with a needs list of information that will be required in order to obtain a successful loan approval.
The third step in the process is the Underwriting. The borrowers information that was collected during processing is sent to the underwriting department, who will again take a look at everything and evaluate the overall risks. In addition, the underwriter will look at whether or not the loan meets all of the required guidelines for the specific type of loan being applied for. The underwriter speaks directly to the processor and they work together to make sure all items are received and enclosed in the file. This process generally takes between 2-5 business days to complete.
After completing the underwriting phase, the loan will then enter the fourth and final step of the process, Closing or Funding. During this stage, the loan documents will be created, discussed and signed by the buyer in front of a notary. After the documents are reviewed by the funding department, the home buyer receives the keys to their new home.
At Samuel Scott, our Mortgage Advisors are trained to guide borrowers and their real estate agent through the entire transaction. We believe in excellent communication and keeping our clients informed as their home loan process moves along. You’ll find that when you work with true and experienced professionals, the home loan process is smooth and pleasant.
For a residential loan that is tailored to your needs, give us a call. We would love the opportunity to earn your business.