The ABC’S of Mortgage Financing

The ABC’S of Mortgage Financing – From Application to Underwriting

Finding the perfect home is unquestionably one of life’s most satisfying experiences and fuels a thousand happily-ever-after scenarios. But first, a dose of reality: before you’re handed the key to the front door, you have to secure financing. CLM Mortgage, LLC (NMLS# 215239) makes this part of home ownership as streamlined and stress-free as possible. After all, signing on the dotted line is daunting enough. No need to make it mystifying as well. Here’s what you can expect as you secure financing for your new home:

The Application

Think of this step as the getting-to-know you part of the approval process. You’ll meet your loan officer and begin filling out forms so we can learn about you, your annual income, financial assets, and the value of the home you’d like to purchase. You and your loan officer will also decide what kind of loan is right for you based on – among other things – your down payment, credit rating, and a target range for your monthly mortgage payments.

Gathering All Required Documents

This is the hunting and gathering phase of the loan approval process. We’ll provide a list of documents, and you’ll round them up and send them along. Ideally, you’ll be uploading electronic versions through our secure customer portal. Documents also can be scanned and sent as an email attachment to your loan officer. Some of the forms we’ll be asking for include bank statements, paystubs, and W-2s, so for convenience sake, having these available can help expedite this step.

Processing and Verifying Your Information

Once we have all the requested documentation, it’s time for your loan officer to hand things off to the loan processor. You can think of a processor as the financial mechanic in your loan approval process. This is the person who gets under the hood and goes over each part of the application to make sure everything is accurate. That means double-checking all the information and looking for anything that might prevent the smooth approval of the loan, such as missing or inconsistent information.

Completing the Underwriting Phase

You’re getting close to final approval for your mortgage loan, but there’s still one more hurdle to jump. Remember everything the loan processor did? Well, it’s time to go through it all over again, only this time with the underwriter. In addition to triple-checking the accuracy of your documents, the underwriter also evaluates your information against various lending standards to determine if you’re capable of making your monthly mortgage payments. To do this, the underwriter will get into the nuts and bolts of your financial history, evaluating things like your debt-to-income ratio, employment record, and credit reports.

Creating a Closing Disclosure Package

Almost there! Now that everything has been checked and rechecked — your documents verified, your credit history duly noted, the funds sourced, and all guidelines met — your closing team will assemble a closing package that contains everything you need to purchase your home. Your disclosure will be sent to you prior to closing so you can review everything. It will contain details about your mortgage loan, including its interest rate, projected monthly payments, and how much your closing costs will be.

The Keys to Your New Home

It’s the moment you’ve been waiting for! Pen in hand, you sign on the dotted line (actually quite a few dotted lines) and when you’re done the loan is officially closed and funded. Some of the people present at this meeting may include your real estate agent, one or more attorneys, and the seller’s representatives. Once everything is official, it’s time to pop the cork and start the celebration. Welcome to the Chesmar Family!