When you haven’t gone through it before, the loan process can start to feel overwhelming at points and a little intimidating.  Luckily, you don’t have to go it alone!  Sixteen 33 Realty and your mortgage loan officer will be your guides and answer any questions throughout the process. There are six distinct phases of the mortgage loan process.

Here’s a brief outline of what to expect: 

1. Obtain pre-approval 
Find a lender you trust and discuss your budget, finances and loan programs available to you. 

2. Go house hunting
Find a home, and make an offer! 

3.  Submit formal mortgage application
You will talk with your lender and provide information such as bank statements, W2’s, employer information, liabilities, etc.  At this point, your lender will also order the appraisal. 

4. Loan processing
Loan processors gather documentation about the borrower and property, review all information in the loan file, and assemble a complete package for the underwriter. 

5. Underwriting
The underwriter is the key decision-maker. They closely evaluate all the documentation prepared by the loan processor in the loan package. They cross check to see if the borrower and property match the eligibility requirements of the loan for which the borrower applied, and approve or reject the loan. 

6. Closing day
Congratulations!  You will get the key to your new home as soon as the loan funds!

Learning about the loan process and connecting with a lender are great ways to prepare for homeownership- even if you’re still 6 months out from starting the process!