Mortgage loan processing

Having a house of your own is a dream that everyone sees. However, going through the process of mortgage is not an easy task . There are a number of steps that you have to go through before you are approved and the whole process can take a toll of you .

However, if you are aware of the mortgage loan processing then this can lower your anxiety a bit and you would know the steps that your application would go through and what are you supposed to do at each point . Here is something that can be of help to you in understanding the mortgage process .

Get a pre-approval

Before we go into the detail of the mortgage loan processing it is important that we understand how important it is to get a pre-approval . Most of the lenders these days provide pre-approvals for mortgage loan so that they can block a customer and the customer can be aware of the amount that he or she can borrow and the interest rate that they would be applicable for .

When you set out for a real estate investment having an assurance by your side that you are sure to get a mortgage through a lender and the approximate amount that you can qualify for can give you confidence in making your investment . Hence it is important that you have a pre-approval.

The mortgage lending process

Most of the mortgage companies these days provide online processing of the loans. When applying online you are supposed to create an account with the firm on their website . In case you are applying after visiting the lender then also the process is the same. For a home purchase mortgage you can get a pre-qualification with their loan service. This would help you in knowing the amount of loan that you can qualify for and the payments that you would have to make every month towards the loan .

Once that you have filled in the application form it is assigned to a loan advisor who would go through the whole application and would get in touch with you . You are supposed to provide the required documents to this officer who would then assess the details and forward the application to the loan officer who would then decide on the further things .

After the loan officer has gone through your application and approved it then you are called to go through the loan agreement and the interest rates that the lender is offering you . This is the time that you should negotiate with the loan officer if you feel that the interest rates are high.

If you agree with the loan agreement then it is sent to the closing department where the agreements is finally looked upon and in the presence of an attorney and the loan officer you are supposed to sign the loan agreement . It is always advisable that you check the loan agreement again and if there are any points that you cannot understand then you should get it clarified .

After you have gone through all the details then you can sign the agreement and you would be handed over the check for your mortgage purpose .

Documents required for mortgage loan processing

Usually lenders when processing your mortgage loan application ask for the following documents:

  • Pay stubs covering recent thirty days
    • .
  • W-2 statements covering the past two years
    • .
  • Most recent three months statements for any account listed on the application
    • .
  • A copy of the real estate sales contract (for purchases)
    • .
  • 12 months cancelled rent checks or the name and address of your current landlord (if applicable)
    • .
  • Fully executed divorce decree (if applicable).

  • Deed, hazard insurance policy, and most recent tax bill if you are going to refinance (copies)
    • .
  • A letter of explanation for any known credit problems or fluctuations in income
    • .

    If you are self employed, paid by commission, or own real estate used for rental purposes you may also need the following documents:

  • Two years signed personal federal income tax returns including all schedules.
  • If self-employed through a corporation, please provide the last two years corporate returns as well as a year to date profit and loss statement and a balance sheet
    • . List of mortgage lenders

    Some of the mortgage lenders where you can apply for mortgage loans are mentioned below:

    Countywide Mortgages:

    They offer mortgage loans for home purchases, refinance, home equity, etc. You can contact them at 4500 Park Granada, Calabasas, California 91302 ; phone: 1-800-763-1255.

    Quicken Loans:

    With them you can qualify for no doc loan. Contact them at help@quickenloans.com., or call at 800-251-9080 for more details.

    1st Choice Mortgages:

    They have more than 15 years of experience in the mortgage industry. They offer no doc-limited loans to their customers. You can contact them at Po Box 101451, Palm Bay FL 2910-1451; Office: 321.722.2650 , Fax: 321.722.2621, Toll Free: 800.936.6916, Toll Free Fax: 800.936.6919.

    E-Loan:

    They provide all types of mortgage solutions. Contact them at 6230 Stoneridge Mall Road, Pleasanton, CA 94588, Main Phone : (925) 847-6200, Main Fax: (925) 847-0831.

    Financial One Mortgage:

    They help people with good as well as bad credit to qualify for mortgage and homeowner loans. You can contact them at 721 Lois Drive, Sun Prairie, WI 53590 ; Phone: 608-834-2214, Fax: 608-834-2215, E-mail: info@fomllc.com

    American Mortgage and Financial Services, Inc. :

    They can help you find some of the best deals for home loans. You can contact them at 1580 N. Northwest Highway #305, Park Ridge, IL 60068 ; Phone: (847) 297-1010; Toll Free: (800) 216-8602; Fax: (847) 297-1017.

    Other Articles

  • Well before applying for a jumbo loan, go and...
  • Jumbo loan are those loans that are above...
  • land loans deal with hard money and their...
  • Mortgage loan sales leads have been defined...