So you’re looking to purchase a home and are ready to start the process. Before starting your search, getting pre-approved for a mortgage loan is the best place to get started. The good news is that while the specifics of the loan process vary lender by lender, the general loan format is often similar. We have outlined the 5 major milestones in the loan process:
Step 1: Getting Pre-Approved (Typically takes 1-2 days)
The first step in the mortgage process is to get pre-approved. This is a crucial step because, during this part of the process, the lender will determine what your maximum purchase price is. Typically, the lender will require three major items: a loan application, income/asset documentation, and a credit check (typically in that order). Once you are pre-approved you can begin searching for properties.
Step 2: Initial Disclosures & Loan Application Submission (Typically takes 1 day)
The second step of the mortgage process begins once you have an accepted offer on a property. At this stage, the real estate agent will provide the lender with the residential purchase agreement and the contact information for the Title/Escrow companies involved. All you need to do during this stage is wait for your lender to provide you with initial loan disclosures and be ready to review and e-sign them (talk to your real estate agent first, they may have a few additional documents needed from you during this time).
Step: Loan Underwriting (Typically takes 1 day)
The third phase of the loan process, usually the most cumbersome, occurs once your loan is submitted to underwriting. This is where a formal review of your financials and credit report is done. An appraisal inspection will be ordered and you will need to pay for this report and provide additional documentation during this stage. You will also receive updated Loan Estimates and a Closing Disclosure during this step outlining the terms of your new loan. Be sure to review these thoroughly and ask your lender any questions you may have. At Bluefire Mortgage Group, our loan underwriting process is simplified compared to other lenders and as a result, we can typically approve loans on the same day.
Step 5: Clear To Close & Final Loan Signing (Typically takes 3-5 days)
Once all of the disclosures have gone out and the documentation has been signed off on by underwriting your loan will become what is known as “clear to close”. At this time, your lender will provide loan documents to the escrow company. The escrow company will then work to schedule a time for the final signing to take place and reach out to coordinate this with you.
At Bluefire Mortgage Group, we are here to answer any questions you may have about home financing. Feel free to contact us at (760) 930-0569 and one of our loan advisors will be happy to assist you.