An Overview of the Loan Process
Make no mistake, there’s a lot involved in getting a home mortgage loan. You wouldn’t be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. The rumor you may have heard is true – getting a mortgage is the most painful process on the earth. Our job is to work in such a way that our Charlotte mortgage clients typically say, “Wow, that was easy!” At Fairway Independent Mortgage, we’ll do our job to block the pain, so you’ll never see what some other unfortunate home buyers had to go through working with less qualified mortgage lenders and brokers.
There are several steps involved in getting a home mortgage loan. You’ll see that we’ve made your part in them as easy as possible, and we do all the work! That’s what we’re here for.
Step one:
Determine how much you can borrow
We’ll get some information from you regarding your current:
- Income
- Employment
- Credit History
- Funds Available for down payment
- Goals for owning the house.
With this information, and usually by running a fresh copy of your credit report, we will help you determine how much you can borrow. More importantly, we will then work with you to decide how much you should borrow: Borrow too much and you could end up ‘House Poor’, stuck in a house and unable to furnish it or do other important things. However, you could also spend too little, and send up cramped and dissatisfied in your new house.
Through our integrated approach to mortgage planning we will work with you to determine not how only much can you borrow, but how much should you borrow.
Step two:
Stack the deck in your favor
Once you have determined a goal for your downpayment and monthly payment, you’ll want to stack the deck in your favor. We’ll do this preparing your mortgage home loan application package so that it presents you in the best possible light to several mortgage lenders. We want your loan application to be accurate and to show the potential lenders the actual risk in granting a loan. When lenders see the true picture, they can offer better interest rates and terms on a loan.
As a general rule of thumb, the more a prospective mortgage lender knows about you, the better terms you can get. (Think about it – if you were lending your money, wouldn’t you offer better terms if you knew more about the borrower’s finances?)
Step three:
Create a Strategy
The critical part, and most often overlooked by mortgage loan officers, is to create a personal home loan mortgage strategy for you that will integrate the mortgage loan program you select into your overall long & short term financial goals. Our goal for your mortgage strategy is to help you increase your financial safety, maximize your Net Worth, and achieve your financial goals. Your personalized home loan mortgage strategy will allow you to confidently buy and own your house with less risk and greater financial flexibility.
Step four:
Application Processing and Loan approval
Once we have created a home loan mortgage strategy for you, it’s time to complete the mortgage loan application and sign the disclosures. We will get this paperwork together during a face to face mortgage consultation, or we can deliver it to you electronically for you to print and sign.
Once we get the application, disclosures and other paperwork back from you, we will process it here in our Charlotte mortgage office, and our in-house underwriters will electronically review everything to make sure it fits the guidelines for the program you select. We will also get an appraisal done for the property and coordinate with the law firm or title company to have the title insurance and title deed prepared. After the underwriter approves everything, we will have the loan paperwork and loan funds sent electronically to the closing agents office for the closing.
Step five:
Closing and Funding your Loan
Once everything is approved, we will schedule the closing at a date, time and location that is convenient for you. The closing can take place in our Charlotte mortgage office, an attorney’s office, or even in your house. After you sign all the paperwork and the funds are exchanged, you will get the keys to your new house, or if you are refinancing, you will get your new mortgage started.
Step six:
We monitor your mortgage for you
Face it: life is busy! As you get settled into your new home, or get used to your new mortgage after refinancing, you won’t think about your mortgage every day. We do that for you. Our quarterly RateWatch Reports™ will alert you when there is an opportunity to lower the cost of your home loan financing, and we will be available for you to get together on your mortgage loan anniversary to perform an Annual Equity Review for you. At this review we will make sure that the home loan mortgage strategy you created earlier is still appropriate for you. This will ensure that you always have the lowest total cost for your financing. Monitoring your mortgage for you is our job, so relax, enjoy your new home, and leave the details to us!
Summary of the Loan Process
So, you’ve answered a few questions, given us some detailed information, allowed us to create a home loan mortgage plan for you, and next thing you know, you’re moving in!
We’re in the business of mortgages and home loans — so we do most of the work. Doesn’t that make sense? Call us today to get started, or complete our secure online mortgage application.
