After your mortgage application, we will begin the work of verifying all the information you’ve provided. This process can take anywhere from one to four weeks, depending on the type of mortgage you choose, whether you’re buying a home outside your local community, or a host of other factors.
Within three business days after your signed application, we will give you a good faith estimate of your closing costs. You will also receive a statement that shows your estimated monthly payment, the cost of your finance charges, and other facts about your mortgage.
Stay in touch with us to speed up the application process. Some home buyers find the closing process to be one of the most intimidating aspects of buying a home because it’s so unfamiliar. If this is a concern for you as well, ask us what to expect at your closing.
Once you receive your approval, and you’re waiting to close on the sale of the home, don’t go on a shopping spree. The mortgage lender may do a final check of your credit report or bank accounts to make sure you’re not assuming more debt or spending your cash reserves. There are steps you can take if your loan is denied.
There are three parts of the mortgage process that will require information from you, the buyer. Requirements may vary or change at any time, but typically, your broker will prepare you over the phone or in person for your appointments and closing.
• Full Legal Name
• Date of Birth
• Social Security Number
• Current Employment and income information
• Current Physical Address to cover a 2 year history
• If self employed, a 2 year history of personal and business returns will be needed.
• Once a credit report has been pulled and income calculated, options will be put together to discuss the different loan programs available, together we will figure out which option fits your needs best. Loans are not one size fits all.
• Copy of the signed contract
• Copy of a valid driver’s license
• Most recent 30 days of pay stubs
• Last 2 year of Federal tax returns, to include W2s, 1099s and K1s.
• Homeowner’s insurance quote
• Any remaining documents not given during pre-approval
During this step, the loan type will be finalized, and down payment, monthly payment/total out of pocket will be confirmed.
Once all documents requested have been received you can expect the following: Loan application will be sent to you to be signed (by e-mail or in person), and your interest rate will be locked in. At this time, an appraisal and title will be ordered, and your file will be submitted to an underwriter for review.
Once reviewed, the underwriter will send an approval with conditions (questions). Typical turn times on submitting a file until receiving conditions is 3-4 days, but can vary. Some examples of conditions that frequently surface are: explanation of large deposits into bank account, explanation on employment gap, etc.
Once conditions are gathered they will be sent back to underwriting for review. Typical turn times on submitting conditions to be reviewed is 2-3 business days.
Once the underwriter is satisfied with everything provided, a clear to close will be issued. Once the file is clear to close an exact date/time for closing will be scheduled.
When the clear to close is issued, a Closing Disclosure will be created which will itemize all of the final closing numbers and most importantly the amount to bring with you to closing.
This Closing Disclosure will be sent for review, and it must be signed 3 days before closing, day 1 being the day that it is signed. A typical loan will take approximately 30 days from start to finish, with the exception of Rural Development Loans, which can take up to 45 days pending Rural Development’s (U.S.D.A.’s) workload.
There are important things that you can avoid to prevent negative impact on your credit, among other things. When in doubt, please don’t hesitate to ask your InterTrust Mortgage Lender, that’s what we are here for! These are the most common pain points that you can avoid during your mortgage process:
• Do not apply for other loans (car, boat, business, etc.) during this process. Your credit will be monitored during the entire process, and additional loans can have a negative impact on your credit score that could disqualify you from the original terms of your loan.
• Do not make large cash deposits or unexplainable deposits into your checking or savings account.
• Do not change jobs during the approval process. Verification of employment is done on the day of closing.