The Residential Loan Process

RESIDENTIAL LOANS

There’s a lot involved in getting a mortgage loan but our job is to streamline and simplify the process so you can concentrate on what is important to you…preparing to move into your new home, saving money, or making plans for your home equity check.

There are four main steps involved in getting a loan.

  1. Mortgage Consultation
  2. Mortgage Approval
  3. Mortgage Application Processing
  4. Closing & Funding of New Mortgage

Step 1: Mortgage Consultation

Before one of LMC’s Mortgage Consultants can secure a mortgage for you, there are several questions they will need to know to help them better match your mortgage needs with the right mortgage. Following are some of the questions you can expect to be asked. Knowing the answers will help our Mortgage Consultants offer you an accurate overview of your mortgage options.

Purchase

  • Do you have a down payment?
  • Are you a first-time home buyer?
  • Do you rent?
  • Do you have a current home to sell?
  • Do you plan on occupying the property you are buying?
  • Do you own any other properties?
  • Have you claimed bankruptcy or had a foreclosure in the last 7 years?
  • Are you self-employed?

Refinance

  • Are you looking to change the rate and term of your current mortgage?
  • Are you looking for cash out of your home?
  • How long have you lived in your current home?
  • When was the last appraisal done on your home?
  • Do you plan on occupying the property you are buying?
  • Do you own any other properties?
  • Have you claimed bankruptcy or had a foreclosure in the last 7 years?
  • Are you self-employed?

Step 2: Mortgage Approval

After your preliminary mortgage consultation has occurred and you would like to proceed further into the process, we will begin to ask you for your personal information. Please visit Info Needed to Apply for more specifics. At this time, your credit is pulled and ran through our prequalification system to see if we can get an approval on your mortgage application.

Step 3: Mortgage Application Processing

After all the information is gathered and the terms have been agreed upon, your mortgage application will go into processing. The processing is actually in two parts: Information Collection and Underwriting. The information collected will be such items as the Appraisal and proof of Homeowners Insurance. Underwriting verifies that all the information is in line with mortgage program guidelines. Once all underwriting conditions are met, a clear to close is issued on your loan and a closing date can be scheduled.

Step 4: Closing and Funding of Your New Mortgage

Once your mortgage has been clear to closed, your LMC Mortgage Consultant will coordinate the closing between you and a title company. The lender who approved your mortgage will send closing instructions to the title company to prepare your new mortgage for signing. You then will sign all of the paperwork with a representative of the title company. Your LMC Mortgage Consultant will be present at closing too, to personally address any questions or concerns you may have.

If you closed on a purchase, your loan will fund the same day. If you closed on a refinance, your loan will not fund until the rescission period has expired.