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Mortgage 101 |
The Loan Process
How the mortgage process works
1. Pre-approval
Get pre-approved for a mortgage with Max Leaman and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer."
Click here to start your loan application.
2. Loan Search
Max Leaman will help you to determine which financing options best suit your needs today and in the future. He helps you consider many factors, including:
- How long do you plan to keep the loan
- Is a fixed or adjustable rate mortgage best?
- How many points should you pay?
- What other costs are involved?
- When should you lock in your rate?
3. Loan Application
It's crucial to supply Max with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.
4. Documentation
You must also submit paperwork supporting the application. Information commonly sought includes 1-month’s pay stubs, two years' W2 forms, and account statements verifying the source of the down payment, funds to close and reserves.
5. The Hunt
Begin shopping for a house. Once you find the right home for you and your family, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
6. Appraisal
Mortgage lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.
7. Insurance
Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone.
8. Mortgage Insurance
Some loans require private mortgage insurance when borrowers put down less than 20 percent of the sales price.
9. Loan Processor's Review
All pertinent information will be packaged by your mortgage professional, Max Leaman, and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
10. Underwriter's Review
Based on the information put together by Max Leaman, the underwriter makes the final decision regarding whether a loan is approved.
11. Closing
During this step, final loan and escrow documents are signed.
12. Funding
After the closing, Max Leaman’s closing department will authorize the title company to fund the loan.
13. Congratulations, you are now a homeowner!
If you'd like to learn more, please give me a call at (512) 617-5636. I'd be happy to speak with you!
My consultation is always free and I want to make sure your questions are answered. Please call me today to discuss your home financing: 512-293-1239 (Cell) and 512-617-5636 (Office).
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