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Understanding the Mortgage Process

View of Wilmington North Carolina from across the river

Buying a house is one of the biggest purchases you will ever make, and it’s no surprise for buyers to feel stressed about the process. Most of this stress, however, comes from feeling uninformed about how it all works. Feel more empowered and in-the-know before your next home buying journey by walking through each phase of the mortgage process!

Getting Started

Before beginning your home search, you will want to define your budget, debts, credit, and savings. You will also want to speak with an experienced Loan Officer that can explain the process to you, help you explore your mortgage options, and prep your documents to apply for a home loan.

Apply

The next step will be submitting your loan application to a lender and moving towards getting pre-approved which requires documentation and verification of your income, assets, and debts on top of a credit check. This helps estimate the loan amount that you will likely qualify for, so you are ready to hit the house-hunting market to find the right house within your price range!

Mortgage Origination

Mortgage origination is the process by which a lender works with a borrower to complete a mortgage transaction, resulting in a mortgage loan. So, after you found the house you want to buy, your realtor presents an offer on your behalf, and your offer is accepted. Your loan officer then takes the wheel from there and creates a loan file based on your completed application and provided documentation. Your loan officer will also lock in your interest rate, calculate your monthly payment, order the appraisal, title report, and submit everything to an underwriter for approval.

Underwriting

Once an underwriter receives your file from your loan officer, they will review your application in depth and measure the risk for repayment. After the underwriter has thoroughly reviewed all the necessary information and documents, a final decision will be made on the loan application. The loan may be approved, or it might be determined that additional conditions must be fulfilled before the application can be approved.

Closing Time

If the appraisal, title search and the other verification processes go smoothly, the loan officer will work with a third party such as a title company or attorney to arrange the loan closing. At least three days before closing, you will receive the closing disclosure which outlines the terms of your loan, final closing costs, and any outstanding charges or fees. Once the closing disclosure is signed, there’s a three-day waiting period before the buyer(s) can sign the mortgage loan documents. Once all the documents have been signed and all funds have been properly distributed on closing day, the deed of ownership will be transferred from the seller to buyer, making them a homeowner!

Are you ready to start the process towards owning your own home? Call us today, and we will help you get started!

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Simply defined, home equity is the percentage of your home’s value that you own, and it is the key to building wealth through homeownership. It can be your greatest financial asset, your largest component of personal wealth, and your protection against life’s unexpected expenses. Here are six ways on how to successfully build your home equity!

4 Benefits You Achieve from Homeownership

Owning a home is more than just an address. The investment you make when you become a homeowner includes a wide variety of benefits from building financial stability to strengthening your community. Here are four great benefits that homeowners can achieve from buying their own home!

Buying A Home While Balancing Student Debt

Before you let your student loan debt stop you from getting a house, look at your options, do your research, and ask any one of our loan officers about your options for buying a home!

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Equal Housing Lender LogoALCOVA Mortgage LLC | NMLS#40508 | (www.nmlsconsumeraccess.org)
Licensed in AL, CO, FL, GA (License #42101), KY, MD, NC, OH, PA, SC, TN, TX, VA, WV | 308 Market St SE, Roanoke, VA 24011

 

Equal Housing Lender LogoALCOVA Mortgage LLC | NMLS#40508 | (www.nmlsconsumeraccess.org)
Licensed in AL, CO, DC, FL, GA (License #42101), KY, MD, NC, OH, PA, SC, TN, VA, WV | 308 Market St SE, Roanoke, VA 24011