Before you begin searching for a home, educating yourself as much as possible about the mortgage process is always a good idea. Knowing the procedure is an excellent way to prevent yourself from wasting time. Part of this entails collaborating with a lender to obtain the best mortgage for you and your situation. 

On the other hand, applying for a mortgage can take anywhere from a few weeks to a few months, depending on various factors, so getting the help of a mortgage loan officer could be very helpful. We’ll cover what lenders are looking for, the paperwork required, how long it takes, and the steps needed to get you ready to shop for a mortgage.

How the Mortgage Process Works

There are a few steps that almost everyone will take when they are looking for a suitable mortgage rate

1. Prequalification

Man on tablet with mortgage application on screenYou can start by getting prequalified for a mortgage, which is a rough estimate of how much you can borrow based on your income, debts, and credit score. Prequalification can give you an idea of your budget and help you narrow down your home search.

2. Shopping for a Mortgage

After you have a general idea of how much you can borrow, you can start shopping for mortgage lenders. This can be a bank, credit union, mortgage lender, or online lender. You can compare mortgage rates and terms from different lenders to find the best mortgage.

3. Applying for a Mortgage

Once you have found a lender and a mortgage product that you like, you will need to complete the mortgage loan application. This step involves gathering all the necessary documentation for the lender to review your application. This can include pay stubs, tax returns, credit scores, bank statements, and other financial documents. Depending on your situation, gathering all the required documentation may take a few days to a week.

4. Underwriting Process

Once you have submitted your mortgage application, the lender will review it and gather all the necessary documentation to determine if you are eligible for a loan.

This is where the lender reviews your application in detail and decides whether or not to approve your mortgage. Depending on the lender and your application’s complexity, this process can take a few days to several weeks.

6. Pre-approval

Once you have your documentation, you can begin the pre-approval process. This involves submitting your documentation to a lender, who will review it to determine if you are a suitable candidate for a mortgage and get conditional approval. The lender will also give you an estimate of how much they are willing to lend you. This step typically takes a few days to one week.

7. Appraisal

Couple carrying boxes into new homeAn appraisal is an independent assessment of the value of the property you are planning to buy. The lender will order a check to ensure that the property is worth at least as much as your requested mortgage amount.

8. Closing

If your mortgage application is approved, you must attend a closing to finalize the loan. You will review and sign the mortgage documents at the closing and pay closing costs, including origination fees, title insurance, and property taxes. The closing process can take a few days to a couple of weeks, depending on the lender and the mortgage terms.

9. Funding

After the closing costs, and final approval, the lender will disburse the funds to the seller, and the mortgage process will be finalized. You will then make monthly mortgage payments to the lender to repay the loan process and ensure you have all the legal info for the future.

Ready for a New Home? Contact Union Capital Mortgage!

Overall, the mortgage process can take anywhere from a few weeks to a few months, depending on various factors. Be patient and work closely with your lender to ensure the process goes as smoothly as possible.

With loan options that suit your needs and financial circumstances, Union Capital Mortgage is here to assist you in finding your ideal house. Our loan officers are well-versed in the mortgage process and can help you navigate home buying.

Visit our website or call (440) 585-5626 today for more information!