For many home buyers, the process of applying
for their mortgage is one of the most stressful financial
transactions they ever make. It seems your lender wants to
know everything about you and your finances. And you worry
something will not be "up to par."
But if you know what to expect and what your
lender is looking for youll find applying for your mortgage
isnt so bad after all. Its still time-consuming,
but theres no reason for it to be difficult.
This material will help you know whats
coming when you apply for the mortgage that could pay for
the house of your dreams!
What Happens After Youve Applied What your lender does after youve completed the application.
For many home buyers, the first thing that happens
once the application is completed is a celebration! After all,
completing your application is the biggest single step youll
take toward getting the mortgage that will put you in your new
home and thats certainly an occasion worth celebrating.
For the lender, however, the real work is
just beginning. Your application, along with all the supporting
information youve provided, is turned over to the lenders
loan processing department, and then to the underwriter.
The loan processing department is responsible
for verifying all the information youve provided.
The Verification of Employment and Deposit forms
you signed while applying are sent out, your credit report is
ordered, and arrangements are made to have the home youre
buying appraised. Other documents that may be required are also
Naturally, the time it takes to get all these
documents returned affects how long it will take to approve
your application. If youre just moving from one neighborhood
to another in the same city or area, the process will probably
move faster than if youre moving to an entirely new city
More importantly, if the information your lender
receives during the verification process does not agree with
the information you provided, the discrepancies must be resolved
before the application process can be completed. This will take
time which is why its so important to provide accurate
information on your application.
The underwriter receives your application along
with the verification information provided by the loan processing
department. Here is where all the information is reviewed and
considered, and the final decision to approve or decline your
loan is made. The loan officer you work with does not decide
whether to approve or decline your mortgage.
The underwriters decision is based on mathematical
models that incorporate all the data thats been provided
on the home youre buying, your income and employment, your
assets and liabilities, and your history of credit. Each mortgage
company develops its own approval standards, so that one might
approve you for a mortgage that another would not.