Tuesday, July 17, 2018
By Kelly Poynor
Tips on mortgage loan applications

Are you a first-time home buyer or a seasoned home buyer? It doesn't matter if you are or not because the process is the same. When the time is right, and you are ready to make one of the most significant purchases of your life, it all starts off with the mortgage loan application process. Well, if you're a cash buyer, then you could skip this part. 

The first thing you should focus on is finding the best fit for you. You will want to search the mortgage loan industry for the best rates and services that fit your life. If you are not sure where to go, this is something I can assist you with as I would recommend the best loan officers in Tri-Cities, WA., area.

If you're a first time home buyer, you most likely don't know where to go. You will most likely be going to ask your family and friends what mortgage company they used to buy a home. To seek the advice from your friends or family member is excellent and all but, that isn't always the best case for you. The reason is the loan officer they chose may not be the best match for you. 

This, my friend, is where I would be more than happy to assist you. Over the years I have created a network of companies and professionals with which I surround myself with, so I can provide the best service to my clients. Loan officers and lending companies are a significant part of this network I have created.

One thing is for sure if you don't have the proper credit score, you won't be able to get a loan. Before you go and mark up your credit score with credit inquiries, you can check your credit score for free once per year with the major credit bureau's. Some sites will ask you to pay but it is not necessary. 

Experian -- Annual Credit Report -- Federal Trade Commission -- TransUnion -- Equifax

I will provide you with some steps you need to take when doing the loan application process.

                                        

1. Getting the Prequalification Process

First, you will want to gather your financial documents in order. I suggest you gather a couple of months pay stubs from your work, past two years of tax returns, print out a couple of months of bank statements unless the loan is coming from the bank you use. When you have these documents, you will bring them to your loan officer to look over and process. These documents will be used to make a tentative determination for the qualification of their loan. Click here to start an application

2. Application Process

The application is the start of the formal loan process. Once you get all the documents to your Loan Officer and you have filled out all the required information needed to get a loan. The Loan Officer will take all this information and materials to have them processed. At this point the Loan Officer will be able to provide you with multiple down payments and "closing cost" will be talked about at this time. You will then receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement from your Loan Officer. These documents will outline the rates, associated cost to acquire a mortgage and loan fees. To view, some of my recommended lenders click here.

3. Processing

The mortgage company/lender will then take the documents and send a loan package over to the loan underwriters.

4. Underwriting process

This portion of the process can be very stressful. The underwriter can make or break a deal throughout the process. One thing you need to think about throughout the buying process is "do I have any control over what is going to happen right this minute"? Just think about that for a minute. Well back to what is going on.

The underwriting team will then analyze all the information taken in and determine if it is acceptable to offer the buyer a loan. Sometimes the underwriters will need additional information. The underwriter will contact you directly and request for you to supply it.

5. Mortgage Insurance

There are multiple types of loan packages. They are, Conventional, FHA, and VA. When getting the home loan, the lender will ask how much money you plan on putting down as a down payment. If you choose to put less than 20% down you will be required to purchase mortgage insurance. Mortgage insurance is obtained from the buyer and included in the monthly mortgage payment to protect the lender from someone defaulting on a loan during the purchasing process.

During the life of the loan, if you have paid 20% towards the mortgage, the mortgage insurance will fall off and reduce the amount of your monthly payment. I recommend that you follow up with the lender once you see that 20% has been paid to ensure they know that you have reached this stage of the loan.

Prior to closing

This step in the process the title company will make sure to order title insurance. Once all contingencies are satisfied the closing date is scheduled for the loan. 

You Have Made it to Closing!

You have made it to the point of congratulations! It is also the point where you can meet me at your new home to receive the keys! All documents are in order, and the mortgage company will write a cashiers check "funds" to the seller for their net proceeds, and the rest of the money will be applied to the other mortgage company to pay off the sellers loan on the property.
 

The title company will receive the title and pass it over to the buyer and let everyone know that the deal has funded and recorded. Once acknowledged, I will meet you at the house to hand over the keys to your new home!

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Kelly PoynorKelly Poynor
Prior to becoming a REALTOR I proudly served in the USAF & Hanford Patrol