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The Home Loan Process Step-by-Step
Getting pre-approved for your mortgage is the first step in beginning the loan process. Once pre-approved you can begin the exciting process of finding your new home!
1. Prepare Your Documentation
- Your W-2 from the past two years
- Your past three months of paystubs
- Tax returns from the past two years
- Your checking and savings account statements from the past three months
- Statements of other assets (Stocks, Bonds, Retirement Accounts)
- Name and phone number of your current landlord or your current mortgage documentation
- Self Employed: Your business tax returns for the past two years and a year to date profit and loss statement
2. Request a Home Appraisal
If you are buying a home, the bank will require that a home appraisal be done to evaluate the value of the home and if certain conditions are met the loan will progress to the next stage.
If the appraiser finds that the value is lower than the loan amount, you may need to re-negotiate the price with the seller. In some situations the appraiser may apply specific conditions like repairs to the home prior to approval. In this case, the home will get re-appraised once these conditions are met. When the appraisal is completed and approved the loan will move onto the next stage.
3. Home Loan Processing
A qualified Mortgage Loan Processor will review all of your loan documentation prior to being submitted to the underwriting stage.
A representative of the lender will review all loan application documentation to assure that it adheres to the loan requirements set out between the lender and the borrower.
5. Mortgage Approval Issued
An initial approval is issued from the lender and may require additional documentation to be provided to the lender.
6. Confirmation of the Loan
Your mortgage advisor will review the final terms of the loan.
7. Cleared for Closing
A Closing Coordinator will be in touch to schedule your closing.
8. Your Loan is Closed
Reaching this step means that your closing was a success and your role in the home loan process is now complete.
The final step in your home purchase journey is now complete. It’s time to celebrate!