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The Mortgage Process

You may have heard from friends and family members that getting approved for a mortgage is a tedious, tiresome task. The fact is that applying for a mortgage does require a lot of work and you must be ready to present a significant amount of information to prove to your lender that you are credit worthy and have the willingness and capacity to repay a mortgage. The recent mortgage crisis has made lenders a bit gun-shy so they are likely to ask for more information than in the past. This means that if you purchased a house in the late 1990s or early 2000s, the process might have changed a bit. Let's talk about the various phases of securing your mortgage loan.
 

Start at the Beginning!

Before you find a home, you will want to go through the pre-approval process with one of our Loan Officers. During this stage, you will be required to dig up various bits of information for your Loan Officer to consider. These generally include basic items such as your most recent income tax documents, pay stubs and proof of your asset, holdings and investments.

When you are applying for a loan pre-approval, it is important to know that the lender will first evaluate the "four C's" to determine whether you should receive a loan. First, your Capacity to make payments will be evaluated. That is, you must have a reliable income, and your ability to make payments should not be compromised by any forseeable future actions. Credit history plays a big role, as well; borrowers want to know about your history of paying bills on time. The Capital or cash reserves in your bank account are also considered. Those consist of the money, assets and investments that could be sold for cash in case you default. Finally, Collateral, or the type of property you intend to purchase, must also weigh in the decision. Know what a lender is looking for, and you are far more likely to submit a successful loan application.

Now, you can go shopping! With your pre-approved in hand, you are able to make an offer on a house that falls within your budget. A pre-approval helps you shop with confidence because you know your financial information has already been reviewed and you know the price of home you are pre-approved for.
 

You Have Found Your House: Now What?

So, you want to make an offer! Now, the full application will begin. Your Loan Officer will make sure that all of your information is up-to-date, especially if 90 days have passed since you were pre-qualified. You will complete your formal loan application, which is generally referred to as the Uniform Residential Loan Application. This is a lengthy process that includes personal information, detailed accountings of your assets and liabilities and employment information.

Borrowers will provide lenders with the address of the home they intend to purchase, along with any relevant details about the property. The lender is then tasked with having the house formally appraised to determine the property's value. It is important for the lender to obtain an accurate market value for the home, as the property will be considered collateral for your loan. After this, you will be ready to go through the closing process.

Before we get to that, though, it is important to note that several people will be reviewing your loan application to make sure that it is properly approved and processed. After you fill out your official application, a Mortgage Processor will be responsible for reviewing your documents, obtaining the appraisal and examining the home's title. The Mortgage Processor makes sure that the Loan Officer did not miss any essential documentation. Then, the application goes to the underwriter, who ensures that no one involved in the sale has a history of fradulent activity. This protects both the buyer and the seller, along with the appraiser. Then the loan is underwritten using standards established by federal and lending regulators.
 

Get Ready to Close!

When you have final loan approval, it is time to close on the purchase of your home.  You will need to provide evidence of homeowners insurance for a full year for the house you are buying prior to Tucker preparing your closing documents. You will receive a preliminary Closing Disclosure from Tucker Mortgage for review a minimum of 3 days prior to your closing. In most cases, you may need to bring money to the closing, which is essentially the final step in purchasing your home. A wire transfer for funds to closing may be required. Make sure you talk to your Real Estate Agent and Tucker Mortgage Processor or Loan Officer to ensure that you have all of the proper documentation needed to go to closing.

During the closing, you need to make sure you read and understand all of the documents that have been sent to you, either with a real estate agent or a financial professional. You may even ask your adviser to go over the documents with you in detail before you close just to make sure you are prepared to sign the formal documents. Experts encourage homebuyers to ask questions, even if they have been through the process in the past.

Closing is a detailed process that requires just as much vigilance as shopping for your home! Your mortgage lender can walk you through the detailed steps of obtaining a mortgage, from the initial pre-approval paperwork all the way through your closing meeting.
 

Resources

You can rely on your Tucker Mortgage team to help you get the best mortgage for your personal needs and financial situation. Tucker Mortgage is a unique online source that allows potential homebuyers to review loan options and even apply for a loan at any time, day or night! Just because we are online does not mean we are less reliable; Tucker is a full-service lender that has a highly qualified staff supporting all of our mortgage applicants. We are committed to finding the perfect loan for every one of our clients. You deserve to be a homeowner and Tucker Mortgage can help! Why wait to start your pre-approval process? Check out the resources and application documents available right here through our website, and take your first step toward buying a home.

TUCKER MORTGAGE, LLC
9201 N. MERIDIAN ST., STE 200, INDIANAPOLIS, IN  46260
Toll Free:  (800) 257-1195
Direct:  (317) 472-9201
webapp@tuckermortgage.com
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