The Mortgage Process
January 24, 2025 | Posted by: Sherry Corbitt
If you have never had a mortgage before, you may not be familiar with the process. There are many different steps involved in the entirety of your mortgage. Of course, every mortgage will be different, depending on what lender, broker, or mortgage amount you have. Although no mortgage will be the same, there are basic steps that everyone will go through during their mortgage.
1. Discussion with a Broker
Not everyone chooses to use a broker for their mortgage, so this may not be the first step for you. Yet, in 2022, there are many more benefits of using one than trying to go through a mortgage without one. A broker will help you get a lender for you and the best available product through your mortgages. They also will assist in getting your lawyer instructed and ensure that everything is ready for your closing day. At the very beginning, though, a broker will want to sit down with you and get to know you and your mortgage needs. They will evaluate your income, what down payment you have prepared, and what type of mortgage you want. Then, they can look for the right lender who can accept you with this information.
2. Application
If the broker believes that you have the property qualifications for a mortgage, they will ask you to fill out some application forms for the mortgage. You will also be required to provide some personal and income documents.
3. Lender-Approval
After the broker sends the documents to the lender, it is time to wait and see if they accept the mortgage. The lender will be focusing on the mortgage amount, the client's down payment, and their credit score. They will also check the client's income to ensure sufficient work to pay for the mortgage.
4. Lender Submission
If the lender accepts the deal, it will be time for the broker to get you to the best rate and product possible for your mortgage. You will also decide if you want a fixed or variable mortgage, affecting which kind of rate you will receive. Once this information is determined, the broker can submit it and wait for the commitment to come in.
5. Signing Commitment
Once the commitment comes in, it will be time to sign. The commitment is a package of mortgage information based on your personalized mortgage. It will discuss your mortgage, the term, amortization, payment options, and schedule. There are a lot of factors in the commitment, so you must take your time reading through it.
6. Documentation Stage
The lender will have a list of required documents that they need from you. These documents will range from property papers, income documents, personal information, and lawyer details. To ensure that you can close on your closing date, make sure that you provide your broker with the required paperwork as soon as possible. Your broker can then submit it to the lender for review. If they need anything within the documentation stage, they will notify the broker, who will get in touch with you.
7. Signing With the Lawyer
On the closing day or a bit before, you will go into the lawyer's office to sign all the legal documents. This will legalize the mortgage and the ownership of the property to you.
8. Closing Day
You will have full ownership of your property on your closing day and can move in.
Going through the mortgage process does undoubtedly have several steps. Yet having a mortgage broker with you will elevate any stress during your mortgage.
If you are thinking of getting a mortgage, please reach out to me!
Sherry Corbitt, Mortgage Broker
Sources
-Webber, Matt. Ryan (2022). Mortgage Process Explained. Investopedia. Retrieved from https://www.investopedia.com/mortgage-process-explained-5213694
