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Mortgage Ways :: Best Deal for a Mortgage Info |
Best Deal & Procedure for a MortgageMortgage rates near historic lows. Federal Housing Administation (FHA) raises loan amounts - More loans now qualitfy for FHA rates. For lowest rates, click here: FHA Express - The quick way to get an FHA loan! Fill out the (no obligation) form there. About the Loan Procedure Pre-Qualification Pre-qualification takes place before the loan process actually starts, and is usually the first step after initial contact is made. The lender gathers information about the income and debts of the borrower and makes a financial conclusion about how much house the borrower may be able to afford. Different loan options may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of loan program you are suited for. Application The application is in fact the start of the loan process and usually occurs between days one and five of the home loan. The home buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and gives all of the required documentation for processing. Various fees and down payments are considered at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) within 3 days that itemizes the rates and associated costs for getting the loan. Processing Processing takes place between days five and 20 of the loan. The "processor" reviews the credit reports and checks the borrower's debts and payment histories as the VODs and VOEs are returned. If there are un-acceptable late payments, collections for judgment, etc., a written explanation will be asked from the borrower. The processor also looks at the appraisal and survey and checks for property issues that may need further discernment. The processor's task is to put together an entire package that may be underwritten by the lender. Underwriting Lender underwriting takes place between days 21 and 30 or sooner. The underwriter is responsible for the decision whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is required, the loan is put into "suspense" and the borrower is contacted to give more documentation. Mortgage Insurance Mortgage insurance underwriting will happen when the borrower has less than 20% of the loan amount to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default. As earlier indicated, if more information is needed the loan goes into suspense. Otherwise it is usually returned back to the mortgage company within 48 hours. Pre-Closing Pre-Closing will take place between days 25 and 30. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is planned for the loan. Closing In most cases the closing occurs between days 25 and 45 of the home loan (depending upon the designated length of your escrow). At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the mortgage process and actually buys the house. Top of this Best Deal for a Mortgage page. |
