Confused about the loan process?
We can help. The mortgage process can be confusing and overwhelming. With U.S. Home Mortgage, it doesn’t have to be! Here’s a step-by-step glance at what you can expect when financing your new home or refinancing your existing loan.
1. Pre-Qualification
The first step of applying for a mortgage is pre-qualification. First, give us a call or fill out our online pre-qualification. We will need only six pieces of information to get started:
- Your full, legal name
- The address of the property you need financing on
- The purchase price or estimated value of the property
- The potential loan amount
- Your household’s monthly income
- Your social security number in order to pull credit. (Please note that we do not ask for your social security number in our online form for security purposes. Someone will call you after receiving your online submission to discuss your options and ask for your social security number.)
After those pieces of information are obtained, we will send you a loan estimate for any potential terms or types of loans you might be interested in. You can take as long as you need to decide if you would like to continue.
2. Application
Once you have decided to proceed with one of the loan estimates, you will sign an “Intent to Proceed” form and then the application process can begin. After signing the form, you will meet with our loan officer to complete an application and sign disclosures.
3. Processing
Once all disclosures have been signed, we will begin processing your loan file. At this time, our loan processors look over your credit report, income, assets, and liabilities to prepare for underwriting. Before submitting to underwriting, the processor will need documentation to verify your information. This documentation includes (but is not limited to):
- 30 days’ recent paystubs
- 2 months’ recent bank statements
- Homeowner’s Insurance agent name and phone number
- Previous two years’ tax returns
- Previous two years’ W-2s
- And a purchase agreement if the loan is for a purchase
Our processors will ask you for any additional documentation they might need. The sooner we have supporting documentation, the sooner we can continue to the next step!
4. Underwriting
The underwriter is responsible for determining whether the package submitted by the processor is deemed as an acceptable loan. If more information is needed, the underwriter will issue a “conditional approval”, and once the requested information is cleared, a final approval will be issued.
5. Pre-Closing
Next, we will work up a closing disclosure, which will be sent out to you at least three days before your closing date. This gives you three days to review the closing costs and make sure you understand any and all fees that have accumulated, what goes into your loan amount, and what your payment will be.
6. Closing
Purchase: Time to celebrate! Today is the day! You will set up a time with your lender and your real estate agent to sign closing papers and get the keys to your new home.
Refinance: For a refinance, there are three additional days known as the “Right of Rescission” that are added on to the three days after you receive your closing disclosure. This time is given to let you have a chance to cancel the transaction if you feel that you need to. There are a total of six business days between the day we receive the final approval and the day the money is disbursed to pay off your old loan. This is the day you will also receive a check if you have opted for a “Cash-Out Refinance.”