The loan
process may seem daunting at first glance, but using a mortgage banker like Universal Mortgage can make obtaining real estate financing a smooth and enjoyable process. Here is a step-by-step guide to what is involved in getting a mortgage:
The first step is to learn how much you can afford, and how much bank will lend to you based on your financial status. Typically, the pre-qualification process is done right over the phone (in just a few minutes) or on our website. We will discuss your credit history, employment status, income, assets, debts, and your general preference in property type and loan program.
Before placing a bid on any property, it's always best to get pre-qualified first. We can provide a letter to you or your realtor, evidencing that we have pre-qualified you and reviewed your financial information. This will make the seller feel more at ease that you will be able to obtain financing and that there won't be any surprises down the road.
To get the ball rolling on obtaining approval from a lender, the next step is to fill out the loan application. You can do this in several ways:
Once the application is completed, we will let you know which documents will be needed to complete the file package for submission to our lenders. Generally, the list of documentation includes:
- Two most recent paystubs (or past two years federal tax returns if you are self employed)
- Two most recent W-2's
- Two most recent statements for your savings, checking, investment and retirement accounts (all pages)
- Fully signed purchase contract (if applicable)
- Copy of your photo I.D. - either driver's license or U.S. passport
We will then put together your file package and do extensive research to find the most suitable loan program and lowest interest rate for your scenario. We will also coordinate the appraisal inspection at this point as well.
Usually, the lender will contact us with an approval notice within 7-10 business days (sometimes much sooner). Our office will send a copy of your commitment letter to all appropriate parties - the client (you), your attorney, the bank's attorney, and the realtor (if the client authorizes it). The lender may ask for a few minor bits of information or documents ("conditions") in order to complete the approval. Once all items are reviewed and satisfied by the lender, we can then schedule the closing date.
Note: If you are buying or refinancing a co-operative apartment, the board meeting to go over and approve the transaction details will take place around this time. Please contact your realtor or board representative for more details.
Scheduling the closing is simply a matter of coordinating all parties to meet and sign the closing documents together. The parties involved will vary based on the property type and transaction type (purchase or refinance), but it can include the buyer (borrower), seller, buyer's attorney, seller's attorney, closing agent/title company, building's managing agent/board member, etc. On the day of the closing, your attorney will instruct you on where to go and what to bring.
On refinance transactions, there is always a three day rescission period from the date of the closing until the lender will send the funds to pay off your old mortgage. This is also sometimes called the "funding period".
