It is important to organize all your documents from the very beginning. This insures that the process of acquiring a home loan becomes faster and more seamless. The documents that you would need to get together are SS, employment and income docs, pay stubs, W-2s, Financial statements (for self employed), IRS Tax Returns etc.
Initial Consultation and Pre-qualification
In this step you will meet with your loan officer and discuss your home loan needs. The loan officer may check your credit and ask you some general questions. If you are ready loan officer will also discuss different types of loans and the right loan program for you.
The application process is very simple. You will need to fill out the mortgage loan application with your loan officer, receive initial mandatory disclosures and indicate your interest in proceeding with the loan transaction.
Processing will require most of the work and time. In this step you will provide all documents necessary to underwrite your loan application, complete the verification of employment, income, SS, assets etc., and order appraisal.
The underwriting step mainly involves the funding institution (aka bank) where the underwriters will thoroughly review all submitted documents and determine your ability to pay, credit worthiness and overall qualifications for the loan. They may request additional information and documentation as the underwriter and loan officer work together to get a decision.
Closing & Funding
Congratulations, your loan is approved. Once you get the notice that you loan has been approved, your loan officer will work with you to schedule date and time for you to sign final loan docs. You would need to sign all federal mandated documents along with debt obligation paperwork also known as Note and Collateral paperwork also known as Deed of Trust. Once all the paperwork has been signed the funds will be released in accordance with state law.