Step 1: Mortgage Application
This article is part of the “The Loan Process” series and is intended to give borrowers a deeper look at what to expect during the loan application and consultation stage of the loan process. The loan application and consultation stage of the loan process is usually your first step towards securing a mortgage. Whether you are purchasing, refinancing or renovating, the consultation is the most important stage because it is during this stage where we set expectations and you make your goals clear to us so that we can help you secure the perfect mortgage.
Answer All of Your Question
The first goal of the initial consultation is to answer all of your loan and real estate questions. Our goal is to make sure you are comfortable every step of the way. If you have any questions about the process, the market, loan products, etc., it as at this stage that we want to answer all questions. We will take as much time as needed to answer all of your questions and make sure you are comfortable in moving forward.
Define You Mortgage Goals
It is also during this stage of the loan process that we will take the time to understand your specific mortgage/real estate goals. If you are purchasing, we want to understand your financial comfort level such as desired payment range, down payment funds available, etc. If you are refinancing, we want to understand you desired savings or cash out goals. Likewise, if you are renovating, we want to understand you renovation goals and the cash required to make those renovations. It is during this time that we will run some what if scenarios and provide you with our professional opinion on the loan we feel is right for you.
Taking the Loan Application
Up until this point, all we will have done is generalize or estimate what we think is right for you based on our conversation. Once you are comfortable and all your questions are answered, we will then take a full loan application (including pulling credit) which will give us all the information we need to actually identify the loans for which you will qualify. If purchasing, your application will also give us the information we need to see if you qualify for any down payment assistance programs. The mortgage application takes about 20 minutes over the phone and consist of a variety of income, liability and asset questions. Although not required, you may want to have the following available so that we have the most accurate information to put into your application: last two paycheck stubs, last two year’s W2s, recent statement for all checking and saving accounts, recent statement for any retirement accounts such as a 401k or IRA, etc.
Next Step: Mortgage Pre-qualification
Once we have a complete loan application, we will analyze (pre-qualify) your loan application and determine what loans you qualify for (if any) and provide you with an exact quote/summary. The loan summary will including proposed rate, payment, closing costs, etc. Please note that we cannot provide you with a quote or pre-qualification without taking a full loan application as our software and underwriters require certain information before they can render pricing or an approval decision.