11 Steps of the Mortgage Loan Process

The processing of mortgage loans involves a series of stages that are completed within a period of six to ten weeks. It is a very long and intricate procedure for the parties involved. The mortgage loan processor oversees the entire process while the borrower adheres to the instructions given by the creditor. Do you want a house loan? If so, you may wonder about that. The steps are generally the same, but your creditor may have unique patterns. There are about four steps that you should expect to complete during the processing of the mortgage loan. They are explained below.

Applying for a mortgage – After finding a suitable creditor, you will fill out a loan application form. Currently, the process is done electronically on the Internet. After filling in all the blanks, as openly as possible, you will send it to the mortgage processor. The processor will contact you immediately instructing you to deliver certain documents. These include your recent bank statement, form of payment, W-2 forms and income tax returns, if you are self-employed. The paper work is usually sent by mail and, therefore, the Steps of the Mortgage Loan Process can be deferred.

Step One: Loan Started

Apply online, schedule a meeting with your mortgage advisor, or call into get the mortgage loan process rolling

2: Getting the Package Out to the lender

Electronically sign disclosure package & gather needed documents.

3: Appraisal Requested

We will request an appraisal with a locally certified appraiser.

4: Appraisal Completion

Value is given to your new home and a copy is sent to you.

5: Sent to Processing

Our Processor will oversee the quality control of your loan to send to the Underwriter for Initial Approval.

6: Submitted to Underwriting

Your loan is now awaiting the Initial Approval!

7: Mortgage Approval Issued

An Initial Approval has been issued and we will help to gather any extra documents requested.

8: Confirmation of Loan

We take Step Eight as an opportunity to review the final terms of your loan.

9: Conditions sent in for Final Approval

We have sent your loan in for Clear to Close.

10: Clear to Close

Our favorite Step. Our closing coordinator will be in touch to schedule your closing.

11: Closed

Reaching this Step means that your closing was a success and your role in the mortgage loan process is now complete.

Step Twelve: Funded

The final Step in your home purchase journey is now complete, congratulations!

The Golden Rules of Mortgage Lending – The Five Mortgage Rules In Lending

Most Americans can not have a home without mortgage loans. Well, another option is to inherit a home. We, as a community, buy everything in loans. Lenders change their attitude towards borrowers according to different factors. If the economy is rising, lenders seek borrowers. When the economy shrinks, borrowers find it increasingly difficult to get a mortgage loan. However, you can find a mortgage loan regardless of economic conditions.

5 Important rules should be considered when advisors and clients are helped to quickly understand how the mortgage works. The reasoning is quite simple, if the customer has a basic indicator of how finances work, then it is much easier to deal with it. If the consultant educates the client, he will be more successful as an operator, gain many more referrals and be seen more competent than others.






What are these about and how do we apply them in the world of finance?

Attention to detail is paramount! Each rule will always cross reference to the next S rule. The 5 S’s are always interrelated.


A good broker should be based on security. In that sense, it means that we help you lend against property as a primary security. Is the customer buying real estate security? Are you refinancing real estate? Is the transaction a combination of refinancing and buying?


Also known as “The Law of Affordability”.

Can the customer pay the debt? This will include general exposure to customer debt. In general, a serviceability analysis will be performed in the customer accessibility position: the common-sense rule. This is to ensure that the customer can pay the debt (s).

Remember, different lenders do this differently, so that the accessibility position of a customer may vary between different lenders. It should be in tune with the different requirements of the lender.


Keep in mind that different lenders make their assessments differently. They see the structure differently. The loan structure of your clients is extremely important. This may involve identifying the difference between an encrypted loan and an unencoded loan (owner-occupied or investment), since different laws may govern different loans. This may also involve knowing how different products are valued with different lenders. This can also involve the way the loan is viewed in terms of service capacity. So, as an example, an investment loan has a debt capacity greater than a mortgage loan, since some lenders take into consideration the negative adjustment when evaluating the loan, since the loan can / can be deductible. The lender also takes into account the rent, if applicable. Rent is an income.

The documentation required to allow a loan to be processed. Make sure you have compiled all the necessary documents to be able to judge that the loan application is ready to be processed. Your application for funding is a statement. The income documents you provide are statements. The ID you provide to the customer are statements. The loan statements that are provided to refinance are statements. There are many aspects to the five S statements aspect. You should be able to decipher what is needed the moment you deal with the customer.


Remember to explain the whole transaction.

This is the sale and / or explanation of the deal. This is your opportunity to sell the customer to the lender. Remember, the lender either does not know your client or has a personal relationship with him. Stay alert to the facts. Learn everything you can about the client about yourself and your situation. Translate this information into relevant facts related to the application. As much as possible, be detailed, but avoid using emotional language.

As a broker, if you can interrelate these 5 five rules, you will be successful.

The Way to Your Dream Home – Mortgage Home Loans

Bad credit loan is a type of loan that mainly depends on your past credit history. The previous credit history is important because it contains all of your documents, such as previous loan repayment patterns, county court judgments, and financial transactions. If you have a standard or late repayment, there is a risk that you will be offered a loan so that your claim is marked as mortgages with an incorrect history.

Different Types of Mortgage Loans

You can get mortgage loans to buy a home and a property. You can also use equity in your home to get secured loans. The types of loans available are equity and credit line loans. Both are almost equal. However, in the latter case, you have the option to pay interest only. In the case of a home equity loan, you should make a fixed monthly payment.

Fixed Rate And Variable Rate Loans

Fixed rate loans have a fixed interest rate throughout the loan period. Variable rate loans can change interest rates. The rate may go up or down. When the interest rate falls, you can pay more your debts. If the interest rate increases, it becomes difficult for the borrower.

Amortization And Negative Amortization

Negative amortization as a loan option was not available to US buyers two decades ago. The principal amount or the total amount of the loan increases each month. This is because the amount paid in the month is less than the interest for that month. Remaining interest is added to the director. Therefore, the amount of your loan increases each month. However, such agreements are only available for periods of up to two years. You will then make larger payments for depreciation.

Repayment is the gradual repayment of your loan. You make regular monthly payments. You pay all interest for that particular month. You will also pay a capital. In this way, the amount of capital is reduced each month. As you can imagine, negative amortization is not advisable. However, people are attracted to such arrangements due to low payments.

How Can You Qualify For A Home Loan?

You can get up to 80% of the value of the home as a loan. Almost all who can make a down payment of 20% can get mortgage loans. You also need to prove that you have the income to repay the loan amount. Interest rates vary according to your credit score. If you have a bad credit score, the interest rates will be higher. There are lenders who specialize in bad credit loans. This is due to the greater interest they can charge.

Buying a home is one of the most important financial decisions you make in your life. A good knowledge of the type of mortgage products available to you will help you make good buying decisions. Make mortgage loans for you, never the other way around.