The Mortgage Process

The mortgage Process can be very confusing and be an information overload. It’s advised to talk to a lender/loan officer early in the process and get Pre-Qualified or Pre-Approved

They will ask you for a long list of documents “Loan Documentation”

They are looking for your qualifications based on the“4 C’s of Lending”

One of these includes “Down Payment”. They will ask you how much down payment you have and where is it coming from.

Along with cash for down payment they will ask if you have the cash funds for other loan costs known as“Closing Costs”

You may need to increase your loan qualification by “Paying Off Debt” such as student debt, car loans, or credit cards.

If you have less than 20% down you will need to consider some type of “Mortgage Insurance (MI)”

Lastly they will go over how “Rate & Points” which is the “cost” of your loan terms affects your monthly payments.

Once you are pre-qualified then we can start looking at homes and we now turn to:

What Happens During The Escrow Transaction