Mortgage Process Steps
The mortgage application process can be made easier with a few tips on what to expect. GuardHill will require basic information from you to begin the process. This information usually includes your full name, current address, Social Security Number, employment and asset information, as well as the property address of the home that you are purchasing or refinancing. In addition, upon your written authorization, a credit report will be ordered for each borrower on the loan application. The information derived from this documentation will be used to complete the Uniform Residential Loan Application Form — which you will be asked to review for accuracy, sign and date.
Your Loan Originator will walk you through a checklist of all of the documentation that you will need to supply to him or her in order to complete your loan application request. Examples of such documentation are a fully executed sales contract, copy of the property deed, recent pay stubs, recent bank statements, etc. Based on your particular mortgage scenario, your Loan Originator will streamline the documentation asking only for the paperwork that is essential in order to receive an approval and Loan Commitment Letter.
The Mortgage Process Steps
Step 1: Application
Your mortgage loan application can be taken over the telephone, in person, by mail or fax, or submitted online. Your loan officer will advise you as to the specific documentation that will be required for your transaction.
Step 2: Opening
Initial disclosures will be generated and sent out to you, your credit report will be run, and the property appraisal will be ordered.
Step 3: Processing
From here, the file moves to the processing department. The application and all supporting documentation will be reviewed for accuracy and completeness. Any additional documentation that is needed will be requested. The credit report will be reviewed as well the appraisal (upon completion) to confirm that the value of the property supports the loan amount. Your employment will also be verified at this time.
Step 4: Underwriting
Once all documents have been received and fully reviewed, your fully processed loan package will be submitted to underwriting, where the file will be evaluated to confirm your ability to repay the loan and that your application qualifies for the selected program.
Step 5: Approval
Once your loan is approved, GuardHill Financial will issue a loan commitment, and you may be asked to provide additional information or documentation. At this time, your title work will be reviewed. Once all of the underwriting conditions have been met, your loan will be cleared to close, and you will be able to schedule your closing date with our closing department. A final credit report will be run and your employment will be re-verified just prior to your closing.
Step 6: Closing
The closing attorney or title agent will review the settlement statement with you. This document includes all the final costs for the purchase. All documents will need to be signed (such as the mortgage or deed of trust, note, Truth in-Lending Disclosure and other miscellaneous closing documents). The closing agent will collect a certified or cashier’s check for the down payment and closing costs from you. On a purchase, the seller will sign a deed and other miscellaneous closing documents.
Step 7: Funding
The lender receives the signed documents, verifies all conditions have been met, that the figures are accurate, and will approve the loan to fund. The funds are disbursed and the transaction is recorded at the County Recorder’s office. If your loan is a refinance of a primary residence, it will be subject to a three day right of recession; therefore your loan will not fund until the fourth business day after the transaction closes