Shopping for a mortgage? Understand the process first
The process of finding the right home and obtaining a mortgage can be challenging. Most people who apply for a mortgage loan don't really understand the process. Here's a step by step guide to the mortgage process, from application and processing to approval and closing.
Application
When applying for a mortgage, you'll need documentation of your income, bank account s and long-term debt, including credit cards, auto loans, child support and other items. From application to approval and closing, the mortgage process takes an average of 32 days to complete. To prevent delays, gather the necessary documents as soon as possible. These are some of the documents most often requested:
- copy of the signed purchase agreement
- W-2s for the previous two years (or complete tax returns if self-employed
- pay stubs covering the previous 30 days
- bank statements for the previous two months
- evidence of funds for down payment
Processing
Once an application is complete, we begin processing the information. An appraisal of the home and a credit report often are requested, and employment and assets are verified. Heritage will take the time to answer your questions about closing costs and walk you through the process prior to the actual closing. When processing is completed, Heritage will evaluate the application and supporting documentation and determine a final loan amount usually within a few days.
Closing
After the loan is approved, the home buyer finalizes the transaction and signs required paperwork. Heritage then disburses the funds to the settlement or closing agent, the title is transferred to the buyer, and appropriate documents are recorded at the county recorder's office.
Knowing how the process works can make getting a mortgage an easier experience. And now the fun begins-moving and settling into your new home!
