There are many specialists behind the scenes that make it possible for you to purchase your home including – realtors, inspectors, title insurer, insurance agent, appraiser, and the attorney. On your mortgage team, you will meet your processing specialist, while the underwriter, closer, and any other investors or government agencies that might be involved in your loan process are working on your file. The normal mortgage loan process takes between 30 and 45 days from application to closing. When you begin planning for a home purchase, you will need to meet with a banker and get pre-qualified, then find just the right home, obtain your mortgage financing and complete all of the home inspections, and close on your new home. You will start the complete purchasing process with a trip to the bank to speak with a loan officer to get pre-qualified, which consists of going through an interview and documentation process. The banker will ask questions such as whether this will be your first home, primary residence, or whether you have a house to sell before you plan to close on a new one. The bank will require you to fill out a mortgage loan application. You will need to supply the bank with pay stubs and other income documentation, bank statements and retirement statements, picture identification, and your social security number among other things. Then the lender will review all the information that you have provided and help you to determine how much money you can borrow and what your best loan options will be. Now you are ready to start the fun and stressful part of house hunting and determining what your needs and wants are in a home for your family. You will need to interview several realtors and get referrals from friends and family or possibly your banker so that you can be sure you are working with a consummate professional ready to serve you. After choosing your realtor, you will spend some time discussing the important shopping points that you are looking for in your home, such as two or three bedrooms, number of baths, square footage, neighborhoods and safety, school districts, and any other concerns about the shopping process that you might have. The realtor that you choose will locate houses that meet your criteria and some that might not, and then you will go out to view the homes by appointment. Once you find the right house for you to call home, you will be guided through the process of making an offer, signing your Offer to Purchase and the realtor will explain the rest of the purchase process from the point of contract to closing.
At this point, you are ready to make a formal loan application, which means that the bank will make sure that all of your information is up to date and that the new property address is listed correctly in your file. During the time that the realtor and you are conducting inspections on the house, the lender will introduce you to your processor who will begin working on your file to collect your Verifications of Employment, Verification of Rent, and other important documentation necessary to complete your file, which can take up to 2 weeks. In addition, she will double-check all of the information that you provided to your loan officer for accuracy. You might receive a call from your processor asking additional questions or requesting additional information, so please respond quickly because this is a normal part of the mortgage process.

While your loan is in processing, your appraisal and title work will be ordered and received by the lender, while you take care of choosing much needed homeowner insurance. You will need to get several quotes from different insurance companies to ensure the best price for the most coverage being sure to gather quotes that include a $500.00 deductible and replacement costs. Then you will need to make a decision on your Home Owner Insurance provider and notify our office as to your choice of providers. You will most likely need to sign something for your insurance agent to bind your coverage. We will need to contact your agent to request an Insurance Binder just prior to closing.
Once you have provided all of the information requested by your processor, your file will be sent to an underwriter, where you full file will be reviewed again for accuracy and any potential discrepancies. The underwriter’s job is to assess the risk to the lender by reviewing the income, assets, employment history, property, title, and all other aspects of the loan to determine if it meets investor guidelines. This part of the loan process can take up to five business days before you receive a decision. When the loan is approved pending conditions, then you will get a call from your processor requesting additional documentation and possibly asking questions that are more detailed about any items in question by the underwriter. Once you have answered the questions and provided the additional documentation required, the underwriter will again review your file and final approved, which means you are clear to close on your home.
The bank will prepare a closing package and some specific instructions for the attorney and then send the information to them for review. At this time, the attorney will take responsibility for making sure all of the bills and any payments are properly documented on the settlement statement. Everyone from the realtors, sellers, lender, to you the buyer, will review the Settlement Statement or HUD1 for accuracy prior to closing and then closing will take place at the attorney’s office. All parties will come to closing and sign the necessary paperwork and the loan funds are wired to the attorney’s escrow account that same day by the bank for use to settle the bills listed on the HUD1. After the attorney receives the wired funds, they will record the deed at the courthouse in the Register of Deeds office and the house officially becomes yours, and of course, the bank’s. In conclusion, the home buying process works the best if you start with a trip to the bank to get the specifics on your best loan options, then shop for the right house to call home, finalize your home loan, complete the necessary inspections, and then count on a smooth and on time closing. Remember that the mortgage and home purchasing process can take thirty to forty five days from application to recording of the deed. It is highly recommended that you shop carefully for your banker and realtor to make sure that you are working with professionals who can guide you through the home buying process, obtaining a mortgage, and helping you to communicate successfully with the many players involved in making your home purchase transaction go smoothly.