What does the mortgage process entail? Here is your guide to understanding the mortgage process from start to finish. 

1. APPLICATION

You'll need to submit some documents, including, but not limited to:

• Pay stubs – last 30 days
• W2s – last 2 years
• Federal tax returns – last 2 years, all pages/schedules
• Bank statements – Last 2 months, all pages
• Purchase contract – All pages
• Realtor and attorney contact info
• Copy of photo ID – must be legible
• Appraisal payment

The required documents can vary based on the type of loan you're getting and your lender's underwriting requirements. To keep things moving, be ready to respond quickly to any requests for additional documents or details.

2. PROCESSING
Loan file is turned into the processing department. Loan processors gather documentation about the borrower and property, review all information in the loan file and assemble an orderly and complete package for the underwriter. The processor will immediately order your appraisal and begin to process your loan file.

3. APPRAISAL
Appraiser contacts realtor to schedule appraisal. Report available 3-5 days after the appraisal is performed.

4. UNDERWRITING
The underwriter is the key decision-maker. Appraisal is reviewed and file submitted for underwriting. Approval is typically available within 3 days.

5. APPROVAL
Once your loan is approved, the Mortgage Commitment is sent to you, your Realtor and attorney. Processing will contact you to discuss any outstanding documentation (conditions).

6. CLEARING CONDITIONS
Once outstanding conditions are supplied to processing, the file returns to underwriting for final review. Typically takes 48 hours.

7. CLEAR TO CLOSE
Once underwriting reviews the conditions, they clear the loan for closing. The closing department will contact your attorney to set up a closing date. Closing can take place any time after this point.

A FEW THINGS TO KNOW...

• Do not make any large purchases without consulting your loan officer. Spending cash or incurring new debt could negatively impact your ability to qualify for a mortgage.
• After closing, your loan may be transferred to a new servicer. You will receive a notice in the mail when this happens. It is normal and everything is okay with your account.

Watch our Introducton to the Mortgage Process Here.