ABOUT MORTGAGE LENDING PROCESS

Give yourself some times to think about your situation in terms of credit, employment, income, asset and occupancy. Knowing what you have and how much you can afford is important. You also want to differentiate between your wants and your needs. Learn more ->>

Step 2: Choose the right loan program

Understanding your situation is the first step to choosing a right loan program for you. the second step is to understand different loan types and mortgage types. Each mortgage type may offer differrent loan programs and each program may offer several options such as interest-only, no PMI, stated income and stated asset. Learn more ->>

Step 3: Shop for the best deal

In this step, you normally want to speak to several lenders to obtain certain important information from them. Then, you can compare one lender to another. Make sure that you compare apple to apple. Learn more ->>

Step 4: Obtain your conditional appoval.

Your mortgage consultant will help you to submit your application package to your lender, which normally include, but not limited to, the following: mortgage application (1003), credit report, credit authoriztion, income documents, 2 month bank statements and required disclosures. If your application is not automatic decisioned, one or more than one underwriters will decision your application and give you an answer: either a conditional approval, a counter-offer, or a denial. Learn more ->>

Step 5: Clear all loan conditions

If you receive a conditional approval (also called Committment Letter), you are lucky. This approval is conditioned upon one or more than one conditions. At this moment, it is very important to know what they are and how to satisfy these conditions. You must clear all conditions in order to close the financing transaction. Learn more ->>

Step 6: Funding and Closing

Once all conditions are met, bank released the money, and the loan has recorded to secure the loan against the property, industry says that the loan has funded. At this point, Title company, escrow company and bank still have lots to do prior to closing the file; however, the borrower and loan officer are not required to do anything further, in most cases. Learn more ->>