Why? Because it is not that difficult for us and if we have all of the information that we need, the process will be very easy! This process is meant for people that desire and demand that their lenders offer the smartest and safest solutions for their mortgage process. At Loan Yap, we have over 25 years of CONVENTIONAL MORTGAGE expertise and we've seen what works and what doesn't. If you do your part, your application will be underwritten very quickly. Look below to see our process from beginning to end and how we can get you approved for the best mortgage rates as fast as possible.
Once your loan file is submitted, underwriters will review your documents including your credit score, household income, financial history, and asset value as well as the value of the property. The lender will come up with your debt to income ratio or ‘DTI’, which is based on your monthly expenses and household income. Lenders use DTI ratio as the criteria to help determine your ability to make your mortgage payment in addition to your other expenses. In addition, an appraiser will assess the home's value to ensure the sale price is correct for the current market conditions. Once your application is approved and a closing date is scheduled, you'll receive a Closing Disclosure which is an overview of the final details about your mortgage loan. This includes the loan terms, your projected monthly payments, and how much you will pay in fees and other closing costs to get your mortgage.
Before you can close, a title search will be performed to examine the history of the home's ownership to verify that the seller is the legal owner of the property. This will also confirm whether there are any liens against the property which would be securing the mortgage. The title search also helps make sure that no one else can claim to be the legal owner of the house after you buy it. A "lien" is a legal claim on a property as a result of an unpaid debt. Local governments will file a lien against a house if the owner does not pay his or her property taxes. Lenders typically insist that all liens on a property must be resolved before they approve a mortgage application.
This is also a time that an escrow account could be set up to ensure the things like property taxes and hazard insurance on the house are paid in full and on time.
Once it becomes time to close, you'll be asked to sign a lot of documents and pay any closing costs. You'll need to submit a check for the down payment and closing costs, including any taxes and insurance which may due shortly after closing. You will also need to provide the necessary funds to establish the escrow account. Once the transaction is complete, that money will be transferred to the appropriate parties. That is called disbursement and generally a lawyer or title agent will coordinate that process with the seller and/or the seller's attorney.
After the funds are disbursed, all mortgage payments throughout the life of the loan will be handled by a mortgage servicer (which may be the same company you received your mortgage from). Each month, you will receive a statement from your mortgage servicer that shows your principal, interest, and escrow payments as well as your loan balance and any changes to your payment.