6 Steps to Finalize Your Mortgage
Three of our favorite magic words are "clear to close."
One of the last steps in your home purchase before closing day is to finalize your loan. But before we do that, let's back up and review what you can expect from your lender.
The mortgage process is different for every buyer, but can usually be broken down into the following steps:
- Pre-Approval: Your lender will run your credit score and pull your credit history to determine a loan amount for which you qualify. This allows you to set an accurate budget while home shopping.
- Home Shopping: While house hunting, partner with an agent you trust. National real estate websites aren't always up to date, and don't show 100% of the available inventory on the market.
- Mortgage Application: Once you submit an offer and it's accepted, you'll complete a loan application, submit the required documentation and enter the underwriting process.
- Loan Processing: Loan processors gather information about the borrower and property, review the application and assemble a package for the underwriter. They'll open the file and get the following wheels in motion.
- Underwriting: The underwriter is the key decision maker in the loan application process. They will review the borrower's credit history and ability to repay the loan, and then decide to approve or reject the loan.
- Clear To Close: Once you get the all-clear, you'll schedule your closing and final walk-through. On closing day, you'll sign a lot of documents to complete your purchase, and the title company will complete the recording and funding of the loan.
Once you've been pre-approved, and have an accepted offer, the process generally takes anywhere from 30-45 days and involves a thorough evaluation of your credit history, income, assets and documentation.
Once everything is in order and your application has been processed, the mortgage underwriter will approve the loan and your lender will issue a "clear to close." Now, it's time to schedule your closing date.
In just a few more days, you're going to be a homeowner!