Introduction Applying For Your Mortgage 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 you’ll find applying for your mortgage isn’t so bad after all. It’s still time-consuming, but there’s no reason for it to be difficult. This material will help you know what’s coming when you apply for the mortgage that could pay for the house of your dreams!

Table of Contents   Section 1: What to expect when you apply for your mortgage Section 2: Your application checklist Section 3: What happens after you’ve applied Section 4: What you can do after you’ve applied Section 5: Getting the word and what’s next Section 6: Glossary of terms

Section 3: What happens next?

What Happens After You’ve Applied
What your lender does after you’ve 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 you’ll take toward getting the mortgage that will put you in your new home and that’s certainly an occasion worth celebrating.

For the lender, however, the real work is just beginning. Your application, along with all the supporting information you’ve provided, is turned over to the lender’s loan processing department, and then to the underwriter.

Verification

The loan processing department is responsible for verifying all the information you’ve 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 you’re buying appraised. Other documents that may be required are also ordered.

Naturally, the time it takes to get all these documents returned affects how long it will take to approve your application. If you’re just moving from one neighborhood to another in the same city or area, the process will probably move faster than if you’re moving to an entirely new city or community.

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 it’s so important to provide accurate information on your application.

The Underwriter

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 underwriter’s decision is based on mathematical models that incorporate all the data that’s been provided on the home you’re 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.