Processing a mortgage typically involves several steps and takes about a month to carry out. You begin by completing a loan application with your lender. You'll be asked to supply financial information about yourself such as your income and credit history. A property appraisal is also ordered for your new house. Once the application process is completed, the loan processor reviews the credit report and verifies all the financial information you provided to them. If there are any late payments, collections, or inquiries shown on your credit report, your written explanation is required. Once everything is verified, the underwriter reviews the loan package you're applying for, assesses your willingness as well as your ability to pay back the loan, and decides whether to approve or deny the loan. If more information is required to make a decision, the loan is put into suspense and additional information is requested from you. You'll want to respond immediately, or you risk delays and possible expiration of locked interest rates. Furthermore, at this point in the process, if you're going to put less than 20 percent of the price of the home as a down payment, you'll need to apply for private mortgage insurance. Once the loan is approved, the title insurance is ordered and the closing is scheduled. At closing, you obtain your loan proceeds and you must present a check to cover the balance of the down payment and all closing costs. The loan then closes, and you can move into your new home.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
