The Mortgage Application Process – Flow Chart
Knowing Where You Are In the Mortgage Application Process Is The 2nd Step In Providing An Excellent Mortgage Experience
Our clients knowing what happens next is VERY IMPORTANT to us. Whether you are purchasing a new home or refinancing or renewing an existing home, knowing what the next steps are crucial in providing and excellent mortgage experience.
Our Commitment To Provide You With An Excellent Experience:
1. FAQ – Frequently Asked Questions & Mortgage Questionnaire – Our FAQ page contains all of the commonly asked questions that clients have about using a mortgage broker. Our Mortgage Questionnaire is made up of less than 20 questions to help us get to know you better, determine mortgage suitability, and help identify any hurdles along the way.
2. Next Steps & What To Expect – Our Next Steps Page outlines our process on what you can expect next and your role and responsibility in the mortgage application process. We also ask that you download our mobile phone app called my Mortgage Tool Box so that you can have access to the latest rates and our award-winning mortgage calculators.
3. The Mortgage Application – Our mortgage application is designed to take about 10-15 minutes to complete.
Mortgage Process Flowchart
- The process begins when a borrower expresses interest in obtaining a mortgage loan.
- Introductory E-mail
- The borrowers will provide their contact information (Full Name, Phone Number and E-mail address). We will send out our Introductory and process E-mail to the borrowers outlining our application process.
- DLC Mainstream Mortgages (Peter, Derek, and Colten) are always available for a call or text at 431.482.2187 should the borrowers have any questions.
- FAQ, Mortgage Questionnaire, Next Steps, and Formal Mortgage Application
- The borrowers will complete the 3 steps of our application process
- The borrowers can watch our YouTube playlist
- The mortgage application will automatically request some documents through the secure portal from the borrower depending on how they completed the application.
- Application Review & Credit Check
- DLC Mainstream Mortgage (Usually Peter and Colten) will review the submitted application
- Check the borrower’s credit bureau report
- Request any missing documentation on the mortgage documentation
- Ask any questions that we may have.
- Pre-Approval (if purchasing)
- Where appropriate, we will submit the Borrower’s application for a pre-approval.
- At this time we may decide to lock in a rate with a lender to protect the borrower from any rate increases.
- We will provide an e-mail providing all of the pre-approval information to the borrower and the borrower’s REALTOR.
- If the borrower is not working with a REALTOR, we would be happy to offer 3 recommendations.
- Property Selection (if purchasing)
- The borrower may work with a REALTOR to find a property to purchase.
- The REALTOR or borrower’s representative will enter into an offer to purchase (purchase and sale agreement) and agree upon the price of the property and the terms of the agreement.
- Appraisal and Inspection
- The lender may order an appraisal to determine the property’s value for Insured Files (Less than 20% down) there isn’t a cost for the appraisal. For conventional files (20% down or more) the cost of the appraisal is the responsibility of the borrower.
- In many cases, the appraisal is either auto-appraised or waived.
- If appropriate and agreed upon in the contract the borrower arranges for a home inspection.
- The lender reviews DLC Mainstream’s credit application, rationale, all borrower documentation, and property information.
- The underwriter assesses the risk and makes a decision on loan approval.
- Conditional Approval
- If approved, the lender may issue a conditional approval with specific conditions the borrower must meet.
- The approval document is known as the Mortgage Commitment and it will out line the mortgage rate, term, payment and other important information about the mortgage.
- The conditions of a commitment can be questions the underwriter has about the property or the application or a request for further documentation.
- Documentation Submission
- Borrower submits any additional required documentation to satisfy conditions.
- While DLC Mainstream Mortgage strives to get all of the documentation required upfront, there are times when it isn’t possible.
- It is very important that the Borrower provides this information as fast as possible.
- Final Approval
- The lender reviews the updated documentation and issues a final approval.
- We refer to this as “Broker Complete” or “Clear To Close”
- It is important at this stage to review our “What NOT To Do After Your Mortgage Is Approved” because it is possible to have the approval revoked.
What Not To Do After Your Mortgage Is Approved – https://peterpaley.com/what-not-to-do-after-your-mortgage-is-approved/
- After the final approval is issued, the borrower will need to get homeowners insurance in the case of a purchase or contact their existing insurance provider to advise them of the new lender in the case of a refinance or transfer.
- Loan Closing & Lawyer
- The borrower and seller sign the final contractual documents.
- In most cases, the Borrower will select a lawyer or solicitor to finalize all of the legal documents. In the case of refinances or renewal, we are sometimes able to use the services of a title company such as FCT or FNF which can be a little more economical and convenient for a Borrower.
- The down payment and closing costs will be handled solely by the lawyer or title company.
- If the borrower is applying for a Property Tax Installment Plan (TIPPS) this can be applied for directly at the lawyers office or directly through the municpality.
- The lender funds the loan, and the funds are transferred to the lawyer.
- The lender will usually reach out to the borrower with a welcome package that will outline their mortgage, their online portal, and contact information.
- Your lawyer will provide instruction as to when the Borrower can pick up the keys.
- On possession day in the case of a purchase, it is important to walk through the property to identify any defects or anomalies and to also do a final meter reading for all of the utilities.
- Loan Servicing
- The borrower begins making mortgage payments to the lender at the payment frequency decided upon
At any time in the process please don’t hesitate to reach out by phone or text to 431.482.2187