The Steps - How Purchase Loans Are Made
1. PRE-QUALIFICATION Get pre-qualified for a mortgage even before beginning to look for a house. This way, you know ahead of time how much house you can afford. At Major Mortgage USA, we put our experience to work for you by analyzing your situation and providing you and your Realtor with a confident pre-qualification letter.
2. LOAN SEARCH Although buyers often use a lender recommended by their real estate agent, some prefer to do their own comparisons. At Major Mortgage USA, we have access to a wide variety of loans, products and investors. We strive to find the right options that work for you specifically.
3. THE HUNT The buyer can begin shopping for a house. When the right one is found, the terms of the sale are negotiated, including the sale price and often the type and conditions of the loan being sought. Major Mortgage USA will provide a loan pre-qualification letter to the seller, which in a competitive market can tilt a sale in your favor.
4. LOAN APPLICATIONS It’s crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included. The loan representative is the borrower’s main contact throughout the process.
5. DOCUMENTATION Paperwork supporting the application also must be submitted. Information commonly sought includes pay stubs, 2 year’s tax returns and account statements verifying the source of the down payment, funds to close & reserves.
6. INSPECTION A professional inspector can alert you to significant or costly repairs that many not be obvious. The buyer makes necessary arrangements for a home inspection. (Some problems may need to be repaired before finalizing the sale.)
7. APPRAISAL Lenders require an appraisal on all home sales. This step could jeopardize a deal if a big discrepancy were to exist between the sale price and appraised value of the house. Major Mortgage USA makes the necessary arrangements for the appraisal.
8. TITLE SEARCH This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
9. PROCESSOR’S REVIEW The lender’s loan processor packages all pertinent information to be sent to the lending underwriter, including any explanations that may be needed.
10. UNDERWRITER’S REVIEW Based on the information put together by both the loan representative and the processor, the underwriter makes the final decision on whether or not a loan is approved. Lenders are looking for borrowers who will make their payments on time and for property that will cover the cost of the investment if a buyer defaults.
11. MORTGAGE INSURANCE Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan. Even if a loan meets the standards of a lender, a mortgage insurance company could choose to deny coverage.
12. APPROVAL Denial or counter offer. In order to approve a loan, the lender may ask the borrowers put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price. In some cases, repairs or improvements to the property may be required. The lender may also have other conditions that must be met before issuing final loan approval.
13. INSURANCE Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. Your deductible should be no more than $1000. Please set your insurance up early and notify us as to which agency you are using.
14. SIGNING Final loan & escrow documents are signed, money is exchanged, and the house becomes yours!
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103 Historic 25th Street Ogden UT, 84401 | A Division of Highlands Residential Mortgage NMLS ID#134871
