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How the Mortgage Process Works: Let’s Get Started!

Since 1984, Sun American Mortgage has been considered one of the top mortgage lender companies in the Valley. We have a team of loyal and dedicated employees whose top priority is to help clients succeed with their mortgage needs.  For many, buying a home is a whole new experience and can feel a bit stressful because there are many unfamiliar requirements. However, rest assured that by going through Sun American Mortgage you will get teamed up with an expert loan officer that will walk you through every step of the process. If you’ve been thinking of buying a home – look no further! You may be surprised to find out but there are actually a ton of different mortgage programs out there that fit all sorts of financial situations! At Sun American we strive for our clients to have a GREAT customer service experience and have put together the strongest, most effective Home Loan process in the market!

Our top notch team of loan officers will lay out the home buying process and show you just how simple and stress free the mortgage process can be. In order to get that process started they will walk you through what it takes become qualified for a mortgage.  This is considered one of the most misunderstood pieces in the home buying process so let’s break it down to the basics!

Here’s what you need to know!

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What is a Mortgage?

So what is exactly is a mortgage? A mortgage is a loan that helps you cover the cost of a home. Most people don’t have hundreds of thousands of dollars just lying around, so mortgages make it possible for you to pay back this loan over the course of several years or decades even! A home is considered one of the biggest investments that you will ever make in yourself, and we want to be a big part of that.

 

Application

To get started, you’ll first need to fill out an application for a loan. Our certified Loan Officers are the best in the business and are happy to walk you through the beginning stages of the home buying process. A simple loan application will collect things like your current income, assets and debts. The loan officer will then use this information to get you lined up with several different loan programs that will fit purchase price and monthly payment goals.

You can use our easy to use Online Accelerator to get an estimate of what your initial payment could be. Click here to get started.

Pre-Qualification

So what do lenders look for from borrowers seeking approval/qualification? Some of the main factors include:

  1. Solid 2 years of income. Doesn’t necessarily have to be at the same job but it helps.
  2. Stable Job History. More than 3 jobs in 2 years will require some explanation.
  3. LOW Debt-To-Income Ratios. Low debt payments on vehicles, credit cards, and student loans make the process much easier.
  4. Solid assets in the bank/investments
  5. Good Credit Score (680 and above). Loans are available down to a 580 credit score but the best terms are found 680 and above
  6. No bad credit history (collections, derogatory accounts, foreclosure, etc.) These can complicate things but if the bankruptcy is 2 years old you are good to go! Foreclosures and short sales have a 3 year waiting period.
  7. Verifying all of the above with good documentation. Your loan officer will walk you through all of these items so there is nothing for you to worry about!

Knowing your debt to income ratio is just as important as knowing your credit score and can determine whether or not you qualify for a mortgage. This is something that your loan officer will focus on, so in preparation for your new mortgage do some research on good budgeting habits. Reducing credit card debt is always a good idea but having some money in the bank might be a priority if you need it for your down payment. Our loans officers will let you know which route is the best for your situation.

Figure out the most efficient way to increase your credit score. The most common tactic people start with is increasing their credit card limit, so the debt to credit limit ratio percentage is to your advantage. In order to help improve your credit score, try keeping your credit card balances at or below 30% of your total credit limit. When you do this, it could increase your score by as much as 60 points.

After you are pre-qualified, your Loan Officer is able to prepare an accurate pre-approval letter. This is used most often when purchasing a home. The letter is then given to your represented real estate agent as well as to the sellers agent, which ensure you are qualified to purchase the home you’re about to make contract on.

The seller’s agent will oftentimes call the loan officer to see how solid your pre-qualification is. This gives us a great opportunity to brag about awesome you are and convince the seller to accept your offer!

Once your real estate agent has been able to help you go under contract on a home they will send your loan officer a copy of the contract so that the real fun can begin!

Processing Your Mortgage Loan File

After receiving your purchase contract and all your documentation in the pre-qualification process, our highly trained mortgage loan processors will thoroughly go through your file to make sure everything meets the loan program guidelines and is accurate.  In this processing stage of your mortgage file, here are some of the steps that are taken: (some of these steps you may not see)

  1. Ordering the appraisal
  2. Order title work on property
  3. Order insurance on the property
  4. Update and further verify income and all other documentation
  5. Scrub through your credit report and update/verify more information
  6. Review all documents that come back(appraisal, title, and insurance)
  7. Thoroughly scrub through entire application and make sure everything is ready

 

Underwriting

Many of our staff members have been working at Sun American for 15 years or more! What they love most about their job is helping clients achieve all of their home ownership goals. This is why hours of dedication and hard work goes into this next process before you get ready to sign your loan.  An experienced underwriter with a thorough understanding of all the different mortgage programs will compare the documents that have been submitted against the guidelines for the specific type of loan you are seeking approval for.

They thoroughly scrub through the file to ensure you have the ability to not only qualify for the loan, but also have the ability to effectively pay it back. Once they have confirmed that your situation meets the guidelines they will issue an approval on your loan and move it along to the next phase!

Preparing To Sign

All of this documentation comes to a close as you hit this signing process. At this point your loan file is pretty lengthy, but it is a necessity to ensure all the “i’s” are dotted and “T’s” are crossed.

 

Funding Your Loan!

Ahhh! There’s no better feeling than getting a call from your Loan Officer notifying you that your loan has been FUNDED!

For you as a borrower, this is a great day where you can relax and begin to enjoy your new refinance loan/home. For us, the work still continues on your file to ensure everything is all in order per the guidelines/investors.  Many hours are spent with our Closing team to ensure all is done correctly and everything is taken care of- but you don’t have to worry about that! We’ll take it from here!

Pride In What We Do!

We take pride in the work we do. Helping you achieve homeownership, or a lower mortgage rate/payment is a very noble cause. Nothing brings us greater joy and satisfaction. Checkout our top notch reviews and read about our clients great experience with us!

Give us a call 480-832-4343 and let us show you just how easy this mortgage process can be!

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