LIFE OF A LOAN: WHAT TO EXPECT Find the mortgage loan process confusing? You're not alone! Below are the steps of the loan process:
Step 1: Pre-Qualify When placing an offer on a home, you may be required to provide the seller with a prequalification or preapproval letter. For a prequalification letter, Nic will request financial information, including income, assets and debts in order to determine how much of a loan you can afford. For a preapproval letter, Nic will also request documentation to support the financial information provided and will submit that documentation to the Underwriting Department for a credit eligibility review. CMG Financial will then issue you a letter stating the loan amount for which you are prequalified or preapproved. Please note that a prequalification or preapproval letter is not an offer of credit or a loan approval. Final loan approval will be subject to a review of: satisfactory appraisal of the subject property, fully executed purchase contract, preliminary title report, confirmation of no material change to your employment status, income, assets and credit, and any/all other conditions or terms as required as part of the final loan approval.
Step 2: Find your Home and make the offer Provide your Wendy Cline Realtor with the CMG Financial prequalification or preapproval letter along with the specifics you are looking for.
Step 3: Property Inspection Once your offer has been accepted, you have the right to have a licensed inspector review the home for any potential problems or safety hazards. In some cases, you may request repairs to be completed prior to closing the sale.
Step 4: Select a Loam Program Many loan programs are available to you Nic will guide you through the many options, fees and interest rates to choose from. Our goal is to make sure you are fully aware of all of the advantages of each product available.
Step 5: Select a Loam Program The loan process begins with your completion of an application with Nic. Once we receive your application, you will receive initial disclosures that will explain the loan program and costs associated with the loan along with other required federal and state information. Once you confirm your intent to proceed with the loan, Nic will request a number of supporting documents, most of which are described below. Once your documentation is received, the loan approval process can proceed.
Documents required for most home purchase loans:
Most recent 2 years Federal Tax Returns (all schedules of 1040’s)
Most recent 2 years Corporate Tax Returns (if applicable)
Most Recent 2 years W-2’s
One month’s most recent pay-stubs
Copy of Driver License
Most recent two-month’s worth of bank statements to source down payment and closing funds (all pages / even blank ones)
For all properties owned, please gather:
Most recent mortgage statement (including home equity loans)
Most recent homeowners association statements
Most recent homeowners insurance policy statement
Step 6: Processing The Loan Application Nic has a team of highly experienced Loan Processors supporting your needs as well. The loan processing team is responsible for verifying the accuracy of the information you provide in your application. In addition, they will review your credit report, order an appraisal, title commitment and other third-party information necessary to submit your loan into underwriting.
Step 7: Loan Underwriting and Decision Once fully processed, your loan will be submitted into underwriting for a decision. CMG Financial staffs many of the most experienced underwriters in the industry and can typically complete the initial review within 24 to 72 hours. If there are additional supportive documents needed, our underwriter will condition for those items and work closely with processing as well as your Loan Officer to help you satisfy those requirements.
Step 8: Clear to close / Document Signing Once the application has been approved and all underwriting conditions have been met, your loan will move on to the next stage. Depending on the state in which the property is located, loan documents might need to be signed and executed by a notary of public prior to funds being disbursed or are disbursed at signing. Either way, CMG Financial is equipped to facilitate both procedures expeditiously so that you can close your new home purchase on-time and without hassle.
Step 8: Funds Disbursed and loan recording Once the title company receives the funding wire from CMG Financial, the security instrument is recorded with the applicable public recorder. Escrow is now officially closed and you are ready to move in!