The steps are simple - the experience is not, and that's why you're best with a comprehensive advisor.
Bottom Line: It’s easy to explain the mortgage process, but know that the process can be bothersome, and it is super-helpful, and comforting due to the inherent stress in the process, to have someone on your side who knows all of it - real estate, mortgages, and sales (you're up against other parties pulling stunts/ask us).
It's hard but what do you expect, you're getting a house! There are repeated document requests and/or explanation requests and/or errors by the processor or underwriter on understanding the facts, and because we 'know stuff', we can fix problems where others simply 'reject' or jack up the interest rate because you're perceived as more risky than you are. There's lots more, and because we teach you about it in advance, you know we can handle the problems as they come up, and your stress level is minimized.
Here's the detail...
Get a pre-approval from a lender, in consultation with your agent unless you've a friend in the business. Your final lender may or may not be the lender who provided your pre-approval. You'll need to provide photo ID, 2 mos of all financial statements, 1 mo. pay stubs or dd receipts, 2 years’ W2s and/or 1099s, and 2 years’ tax returns if self-employed. You can bring your own lender or we can do it for you based on our dual-licensure.
Procure and submit a fully executed contract to buy a home; you need the document to commence the mortgage process.
Procure and submit initial documents Again – photo ID, 2 mos bank statements, 1 mo. pay stubs or dd receipts, 2 years’ W2s and/or 1099s, 2 years’ tax returns if self-employed.
Receive and service document requests from your processor – updates, other items your processor may deem useful for the underwriter. Expect repeated requests for the same documents, and then more requests for more of the same, as well as different backup.
Formally submit your application and receive your first “loan estimate”. A lender then has 3 days to deliver a first draft loan estimate” and often it’s incorrect and so-acknowledged, so it is just a placeholder.
Your first conditional “commitment letter” arrives, which answers your contractual obligation to procure it within a timeframe. It will have many document requests and other conditions like “pay off the credit cards” etc.
Subsequent commitment letters may arrive (lenders vary) until all conditions have been answered and you receive a final approval in the form of a “clear to close” notification from your lender.
Receive your final approval as a “clear-to-close” (CTC) from the lender. Careful - is it a real CTC, or someone's optimism?
Receive and review your final loan estimate, supposedly 3 days before close. Often it shows up the morning of, and you lawyer earns his/her pay.
A closing date and time is set among the bank attorney, seller’s attorney and buyer’s attorney.
Simple? Sure, when we put simply, but in the real world you need qualified people to help you through it. That'd be us. Contact us now and we'll make your life easier!
info@reinventiverealestate.com, 914.413.3689
*Important qualifications regarding all information on this site: All numbers represent the experience of our agents and may not accurately reflect national averages or others' numbers. All examples are anecdotal, and should not be regarded as relevant to your own circumstances. Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, real estate advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, finance, realtor estate r other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. All information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. To review your situation, reach us at 914-413-3689.