If you are a first-time homebuyer or haven’t purchased a home in a while then you will need to know the 2016 Mortgage Process Timeline. Every year there are changes to the way mortgages are processed and it is in your best interest to know just how long obtaining a mortgage will take as you are planning out the purchase of your new home. The following sections will go over step-by-step instructions of what to expect at all the steps along the way in the 2016 Mortgage Process Timeline.
The first step in every mortgage transaction is and should be going through the process of getting pre-approved. The pre-approval stage is paramount to the 2016 Mortgage Process Timeline and I feel that it is the most important step of them all. The most common reason for mortgage loan denials is because the mortgage borrower was not properly qualified and the loan originator didn’t due their due diligence to ensure that the pre-approval was accurate. The pre-approval process cannot be rushed and if you encounter a loan officer who issues a pre-approval off just an income number without knowing history or debt, run away and come to an experienced loan officer with your best interests in mind. I ensure that I know your history and qualification factors inside and out so I can give an accurate pre-approval that will be in line with what the lender and underwriter will approve you for. A loan originator should be running your credit, taking your application, review paycheck stubs, thoroughly review borrower’s tax returns, and verify unreimbursed employer expenses. One small hiccup here can turn a $300,000 pre-approval to a $225,000 pre-approval. Job history should also be investigated and if there are a lot of jobs in the borrower’s history, a verification of employment (VOE) will be good to ensure continued employment going forward. A deep-dive into the borrower’s credit report can’t hurt either to ensure there isn’t any derogatory items that would prevent a loan from being approved such as judgments, tax liens, charge-offs, bankruptcy, foreclosure, etc. In the 2016 Mortgage Process Timeline most pre-approvals can be issued immediately upon the receipt of 2 years of tax returns, 2 years of W2s, the most recent pay stubs, and any other important docs to the pre-approval process.
Under the 2016 Mortgage Process Timeline, once the borrower has received their pre-approval letter, he or she can now enter into a contract to purchase real estate. Once the borrower gets a seller to agree to a home purchase offer, the borrower will submit the real estate purchase contract to their mortgage loan officer. This is when the actual mortgage process timeline officially begins. At this point in time on the 2016 Mortgage Process Timeline the loan originator will request update documentation such as paycheck stubs and bank statements followed by emailing the borrower mortgage loan disclosures and their loan estimate. Once the borrower acknowledges the loan disclosures and signs the documents, the mortgage file will then be assigned to a mortgage loan processor. A mortgage loan processor is an individual who will be tasked with obtaining and putting together all the documents needed for the loan. The mortgage processor will make sure the file is complete and ready to move on to the underwriting department. The next step in the 2016 Mortgage Process Timeline is the mortgage underwriter receiving your loan file from the processor. During this time with the mortgage underwriter, the underwriter who comb through all your documents, credit history, bank statements, etc to ensure all documents are received and notated. If done properly by an experience loan processor, he or she will make sure the file is very clean before it gets to underwriting to make sure it can get approved as quickly as possible. Next in the 2016 Mortgage Process Timeline is when the underwriter issues a conditional mortgage approval which is an approval but with additional conditions that need to be met. Examples of the additional conditions would be appraisal and updated documents. Once these conditions are met and sent back to the underwriter, the 2016 Mortgage Process Timeline says a clear-to-close or CTC will be issued. What this means is the mortgage lender is ready to fund your loan and will wire the funds to the title company for closing. If you are using experienced loan professionals, the 2016 Mortgage Process Timeline should take no more than 30 days to complete. This 30 day timeline is contingent on the borrower being proactive with getting the lender everything they need so they can get through the process smoothly.
As you can see, there are many steps along the way in the 2016 Mortgage Process Timeline. As a recap, here are those steps:
– Choosing your home
– Entering into purchase contract
– Receiving mortgage loan disclosures and loan estimate
– Mortgage loan processor is assigned to your account
– Mortgage file is sent to underwriting
– Underwriting issues conditional mortgage approval
– Clear-to-close is issued after all conditions are met
– Loan is funded and funds are wired to the title company
– Loan closes
Make sure you have an experienced professional with you along this journey so that you can get your loan approved in the shortest amount of time. Feel free to call me at 888-900-1020, email me directly at email@example.com, or visit my website at www.loanconsultants.org. I look forward to turning your dreams into a reality.