The Loan Process

In a recent Zillow survey, 44% of home buyers admitted they are "not confident in their knowledge of mortgage or the mortgage process." Home buyers may depend on you for information and help in getting them through the loan process successfully. Let's take a look at the phases of the Mortgage Circle of Life - Origination through Closing.

Origination
The mortgage professional: Determines how much a customer can afford to spend on a home; completes the mortgage application with the customer; orders of credit report and reviews credit history; discusses available loan programs; explains documentation that's required; and verifies a customer's approval/qualification for the mortgage requested.

Processing
Once the customer has a contract on a property, the processor orders an appraisal; initiates / completes a title search and flood certification (if needed); collects, verifies, and reviews documentation; obtains appraisals; bundles the documentation and sends it to Underwriting.

Underwriting
The underwriter analyzes loan documentation for accuracy; evaluates the customer's ability and willingness to repay the loan based on credit and employment history; reviews the appraisal to determine that the property complies with loan program guidelines; ensures there is clear title to the property; determines risk acceptability; and approves or denies the loan.

Closing
After the loan is approved, the closing agent conducts the settlement meeting; makes sure all documents are signed and recorded and closing fees and escrow payments are paid and properly distributed.

Once the property has changed hands and the customer has the keys to the house, they can move into their new home.

*The above information has been obtained and revised from the Zillow website.