The Mortgage Process

Sheryl Landrum
LoanBiz Columnist


Often when people are looking for a new home loan, they are not sure of the loan process. Lenders like to have 30 days to complete a new mortgage. Read on to find out why.

Hopefully before making an offer on a new home you have been pre-qualified for a new home loan--this will save you valuable time. As once your home offer has been accepted, the clock starts to tick. Your loan officer will need a copy of your home purchase contract, with any counter offers, as well as title, escrow, and Homeowner's Association information. Your loan officer will also call for an appraisal of your new home which usually takes about a week to complete.

Your loan officer will also be asking you for the following documentation:

• A copy of your driver's license or social security card.
• Two month's worth of bank and asset statements to verify assets.
• Two consecutive paychecks showing your year-to-date earnings as well as two years W-2s or tax returns if doing a full-documentation mortgage loan.
• A two year residential history.
• A two year work history.
• Divorce and trust papers if applicable.
• An insurance policy on your new home.

Once your new home loan is submitted, it will go to underwriting for approval. Often there are additional conditions to be met before a final approval is given. In the meantime, your Realtor will be working hard to make sure your home and termite inspection is done and satisfactory. If all goes well, you should have your mortgage documents available to sign in approximately three weeks. Once signed, they will return to the lender, reviewed, and then funds are transferred by wire when all conditions are met. The title company will then record the new deed of trust and escrow is officially closed. Viola! You have new home and a new home mortgage.

About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.