The Mortgage Application Process

Approved Mortgage Application Form

Whenever we need to buy a home, you should apply for a home loan. The processing of a mortgage loan involves several steps that might take between six to ten weeks to complete. Different types of lenders can help you get good mortgage rates.

These companies will be able to explain the process to you and give you details of the various mortgage rates, including the mortgage refinance rates in Salt Lake City or any other city. The process is lengthy and complicated. It is a good idea to be aware of the entire process so that you can be well prepared when you apply for a mortgage.

As a borrower, you should follow the instructions of the lender, as the latter oversees the entire mortgage loan process. The steps are typically the same, but each lender might follow certain unique procedures. The standard procedure is explained here.

Application and verification

Once you find a suitable lender, you should fill out an application form online and submit it. The lender will review the application and let you know the list of documents you need to deliver to them. These documents will include pay stubs, bank statements, W 2 forms, income tax returns, etc.

The paper work is normally handled by mail, so there might be some delay. The lender will verify each of the documents you have submitted thoroughly. They might call your landlord, bank, employer, or other entities, featured in all the documents you have submitted. After this pre-approval step is crossed the title appraisal and reports processing begin next. It takes around 14 days for the lender to validate your documents

Underwriting and the closing stage

A loan is approved at this juncture, and the guarantors will validate the documentation. They might ask for credit reports at this stage. If there is any rejection, it can come at this stage. If the application is accepted – a new technique is adopted today, called automated underwriting. This takes less time and lesser paper work.

Finally, the loan process reaches the closing stage. You will get a commitment from your lender so that you can set a date for the closing. You should check all the documents to understand the various charges outlined. Finally, the process is complete, and you will receive your home loan.