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Familiarizing yourself with the mortgage process before looking for a home is a great idea. Knowing what to expect will help you plan ahead and make the whole process much easier. Let’s walk through it!

Application

As the first step, the application gives your loan officer the information they need to help you make the best loan decisions. Assuring the information on the application is accurate and up to date can prevent you from running into any roadblocks in the future.

Qualification

This step usually takes about 24 hours for conventional loans and a bit longer for other types of loans. Having this timeframe in mind helps give you peace of mind and a good idea of what to expect.

Documentation

This step can make or break a lot of loans. Making sure you sign, date, and send disclosures back to your loan officer helps the process move along as planned. Make sure you’ve provided all requested documents including all pages of banks statements and 30 days’ worth of pay stubs.

Appraisal

After a completed and approved home inspection an appraisal will take place. This step usually takes 7 days and may vary based on volume.

Title Report

This report is ordered earlier in the process and should be ready at this point in the process. This report identifies liens or other potential issues with the property that could cause some issues when it comes to the closing process.

Submission

During the submission step all your information will be collected, sorted, and sent to an underwriter. The underwriter will then make the approval decision. This decision can take anywhere from 24 to 72 hours but varies based on a few factors. Your loan type, lender, and volume all affect how long this step takes.

Conditions

Assuming the underwriter approves the loan, they will include some conditions. These conditions can be due at closing or before final documents are signed. Making sure you take the necessary actions needed to meet these conditions is very important. The longer it takes you to meet these conditions the longer it will take until signing. Once all required items are sent to the underwriter they will review and approve them in around 24 to 72 hours.

Documents

You’re almost done! This is the step where upon underwriter approval, the official documents will be ordered. These are the documents you will sign to complete the mortgage process. Expect this step to take approximately 24 to 48 hours as the documents are sent to the title company.

Signing

After the title company reviews everything, they’ll contact you to set up an appointment for you to sign. This step takes place around 24 hours after the documents are received. Once this happens the documents are then sent to the lender.

Finalization

This is it! The very last step in the process. First, all the signatures and conditions are checked. After that the funding and recording of the loan takes place in the 24 to 48 hours after signing. Although it happens rarely, there may be some additional conditions or signatures that need to be taken care of which could cause delays. We hope that isn’t the case for you though.

Ok, you can finally breathe now! You’ve successfully completed the loan process. That deserves some celebrating.

Find a remarkable Mortgage Loan Officer today!