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The Mortgage Loan Process

We’ll be there to guide you through each one

THE 9 STEPS OF PURCHASING A HOME


Purchasing a house is a great investment! If you’ve never done it before, it can seem a little stressful. One of the great things about working with us is that your mortgage banker will go over what to expect and when to expect it. We call this the loan process.

STEP 1 - MEET WITH A MORTGAGE BANKER

He or she will take your application and order a credit report. Because of our upfront underwriting, your mortgage banker will issue a “Conditional Approval” letter that gives you your approved amount. This amount is good as long as your financial information doesn’t change.

STEP 2 - FIND A REAL ESTATE AGENT, FIND A HOUSE

If you don’t have a Real Estate Agent, this is when you find one. If you aren’t sure whom you want to work with, we can help you find a Real Estate Agent. The Real Estate Agent will help you find the right house if you haven’t already done so. The quick approval gives you more buying power because you can walk into a Real Estate Agent’s office with a solid number and not something that is subject to credit review.

STEP 3 - MAKE AN OFFER ON A HOUSE

Talk to your mortgage banker about locking your rate. This is where it starts to get exciting!

STEP 4 - YOUR OFFER IS ACCEPTED!

The offer is accepted by all parties. This is called ratification.

STEP 5 - WE PROCESS YOUR LOAN

Our Operations department leaps into action by verifying your information, checking out your property’s flood certification to see if flood insurance is required and performing a check of all of your documents to make sure they are completed properly. If there are any issues, we go back to your mortgage banker. We order an appraisal and a title search.

STEP 6 - TIE UP LOOSE ENDS

You start shopping around for your homeowners insurance carrier and policy while we tie up any loose ends – i.e. any additional paperwork we made need like W-2s, tax returns, or verification of employment. This part of the process may take some time, but we still beat the competition with our contract to closing times of less than 30 days.You may need to provide initial and additional verification documents.

STEP 7 - YOUR LOAN IS “CLEAR TO CLOSE”

Whew! Almost there! Your file is marked “Clear to Close” internally and one last check is done to make sure documents are still current and that your rate is locked in. Our Closer provides instructions to your closing agent and we receive and review a preliminary closing/settlement statement. Once we approve it, closing is scheduled.

STEP 8 - CLOSING DOCUMENTS ARE PREPARED

Your closing agent prepares a closing package with a bunch of paperwork you’ll need to sign to make the purchase official – a deed transferring the property, the mortgage/deed of trust securing the collateral, the promissory note detailing how you are going to pay back the loan. You’ll also be told how much money you’ll need to bring to closing, if any.

STEP 9 - CLOSING!

CONGRATULATIONS! YOU ARE NOW A HOMEOWNER. START PACKING! Closing happens. Your seller (or, most likely, your seller’s bank) receives their money and you get the keys to your new home! While you do that, we’ll just tidy up a few things on our end and prepare for your payments and any questions you have down the road! Welcome to the Atlantic Bay Family!