How to Apply For a Mortgage Loan - 5 Simple Steps to Follow
Posted by Shefali Raghav on
There are five key steps in applying for your loan. Once you have a finalized contract, it's time to apply for your loan. Now that you know the purchase price and the property address, you can work with your loan officer to complete your loan application, discuss rates and lock options, and select the loan program that best meets your needs.
At Equity Prime Mortgage, we make the loan application process simple.
Step 1: Submit your loan application.
Your loan officer can guide you to do this online, over the phone or in person.
Step 2: Submit your documents. In order to process and underwrite your loan, your lender will request Income Documentation (e.g., Recent paystubs, W-2s/1099s), Asset Documentation (bank account statements), Other Documentation (e.g., landlord history or divorce decree) and any other relevant documents. If you were pre-approved, you may still need to provide some updated documentation. Your loan officer will provide you a checklist.
Step 3: Loan Estimate Issued. Within three (3) business days after the loan application submission, the Loan Estimate will be mailed or emailed to you.
Step 4: Intent to proceed. You will indicate your intent to proceed with the mortgage transaction after receipt of the Loan Estimate. Processing of your loan will begin once this step has been completed.
Step 5: Fee Payment. The lender will typically collect an application fee and order an appraisal after receiving the intent to proceed.
Loan Approval Process
Your loan then moves to the processing stage where a loan processor prepares your file for review by an underwriter. At this point, your processor becomes your primary point of contact. During this time, your key responsibilities include:
- Providing your loan processor with any contract changes, renegotiations or repair addendums if necessary.
- Finalizing homeowner's (property) insurance, and flood insurance if applicable. A copy of your homeowner's insurance policy will be required 15 days prior to closing.
- Reviewing any paperwork you are provided and taking required action.
- Providing additional documentation as requested
- Reviewing any revised Loan Estimate issued.
Note- Submission of this documentation is not a requirement for issuance of the Loan Estimate.
Before you start your mortgage loan application process, consider how much you can afford to borrow.To learn more about this topic, download our step-by step guide to homeownership here and you can always find more information about home ownership on the Equity Prime Mortgage website.
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