6 Step Process – Mortgage Loan Timeline

6 Step Process – Mortgage Loan Timeline

If this is your first time towards mortgage lending then Asset verification, Application form, approval credit reports all this might become a bit confusing where the process starts and where ends. So to help you make it easy to understand we have tried to pin some important process that an applicant has to go through during mortgage application period.

Step 1 – Get Pre-Approval
As most of the people might assume that the pre- approval practice is further precise and sophisticated. First of all one has to go through the mortgage application form you can also apply for mortgage online fill it and usually has to pay for the application form. You have to provide the mortgage lender with all the necessary documents for further inquiry on your financial background and ongoing credit ratings. From the inquiry of your data the lender can report you with exact mortgage amount for which you are endorsed. “No Verification” and “No documentation” loans are long gone. The requirement of documents may vary from the mortgage providers and your individual prospects, but whatever it is you’ll need to do paperwork that can clearly display your income, assets and your commitments towards your income/income source.
The necessary documents might include
Proof of Income
Acceptable Credit
Employment Verification
Other Documents (Social security number/Driver License/State ID card etc.)

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Step 2 – Select Loan Program
Right mortgage loan program choosing is must for individual prospects. While choosing the plan you might be in a dilemma whether to select a fixed rate or an adjustable rate mortgage. Fixed rate mortgage implements principal and interest payments that don’t change throughout the loan time periods. Adjustable rate mortgage offers low interest mortgage rate at start which might go up or down periodically based on market condition and type of ARM adopted. There are best mortgage advisers and best mortgage loan companies who can give you mortgage advice service and help you choose perfect loan program for you with the most competitive rates available.


Step 3 – Loan Application
Loan application is the one which provides a complete figure of your debts, assets and nature of what you are buying to your mortgage providers. To maximize the chances of getting your application accepted there are some influential stairs to take care with the application process to turn into a credible buyer.
Pay off debt
Fabricate your FICO rating
Save for a down payment
Enact minimum of two years of employment history.

Step 4 – Underwriting and Processing
An underwriter is the person or you can say a real estate detective personal who examines your application and makes sure that you have represented yourself and have presented your financial documents truthfully and also haven’t made any misleading claims on your loan application. This detective personal checks your credit score with major credit bureaus like Experian, TransUnion and Equifax. If there is any red flag found on your credit report then in this case you need to provide explanation with valid reasons that can clearly explain your mistakes and the footstep you have taken to adjust the credit flaw.
Processing is the major step in the loan approval which decides that the loan to be approved or denied. The clarification of the application might take five to twenty days from the date of application appealed.

Step 5 – Loan Approval
After loan pre- approval you will be provided with a written conditional commitment with exact amount of loan with fixed home loan rates or interest rate. Then when you find a house of your choice you will have to fill the appropriate remaining details and then your pre-approval becomes a complete application.

Step 6 – Close the Loan
The documents are signed and your funding conditions are met. And now you are an owner of the house of your choice. The title is recorded and the process completes here. The Keys of your house is in your hands.


To find out more Contact us or apply for mortgage online from Hypotec.