How does the mortgage process work?The average mortgage process works as follows: You complete the loan application, compile all required documentation on all your finances, and write any necessary letters that might be needed. Additional documentation is requested by the mortgage company, such as verifications of employment and deposit, appraisal, title, credit reports, and anything else required depending on the details of your transaction. Once all required information is received, it is put together in a submission package and sent to your lending company's underwriting department. The underwriter reviews the loan and depending on the strength of the loan and the submission package, either approves your loan or denies it. If it is approved any conditions from the underwriter are cleared and the closing documents are ordered. Credit denial is rare at this stage, as the strength of your mortgage package is determined during pre-qualification. That is why it is imperative that you not change your employment, credit or asset status at any time during the mortgage process. Once your loan is approved, the closing documents are forwarded to the title company which is where you bring the money (certified funds) for your closing costs and sign the papers. The costs are incurred by the buyers and usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at the settlement. The average cost of closing is usually about 1 to 3 percent of the mortgage amount but varies depending on the area of the country. The signed documents are returned to the lender to verify everything was signed correctly. After this verification, the money is then forwarded (either by wire transfer or check) from the lender to the title company. The loan is funded and the transaction is recorded and closed. If this is a purchase you usually get the keys to your new house the day the loan is recorded. |
We Say "YES" When Others Say "No" 857-205-1068 Centurion Funding Corp. of America 162 East Main St. Avon, MA 02322 |
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