Mortgage Process

The process of applying and gaining approval for a home loan is a complicated and often confusing process. We have outlined this process and highlighted the steps below as a tool to help you understand what all is involved.

Mortgage Consultant Interview

Your professional consultant from Liberty Mortgage USA will begin the process by asking the basic questions needed to identify your wants, needs and goals pertaining to the financing of your new home. The answers you provide will help to begin the customization of your personal home loan.

Application

The application process is the first step in qualifying you for the loan. A standard application form can be completed, with the help of your consultant, which will provide all the necessary information required by all banks and lenders. There are also disclosures that the lender is required to provide to you that will be signed at this stage.

Credit Report

You must authorize your mortgage consultant to run a credit report. Your credit report is used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk and thus may qualify for a better mortgage rate. Your consultant can help in explaining what the report and scores mean to you.

Selection of Loan Program

There are hundreds of different loan programs available to you…this is where a professional Mortgage Consultant with Liberty Mortgage USA can aid you in potentially saving thousands of dollars. Based on the information you have provided in the initial interview, the choices of programs can be narrowed down and the benefits of each outlined by the consultant. This will maximize your ability to make the best personal decision.

Pre-Qualify

Once your decision has been made as to the type of program you feel best suits your needs, the Mortgage Consultant will identify lenders which offer this program and compare their rates, fees and level of service provided. We will obtain a pre-approval based on the information you have submitted on the loan application.

Processing

Upon execution of a sales contract, we will ask that all required documentation be provided by you to support the information on the application, (i.e., pay stubs, W-2’s, proof of assets, etc. as required per the program). At this time we will need you to finalize your insurance provider, determine whether to escrow taxes and insurance and when to lock in your interest rate. Your complete file is now ready to be submitted to the lender’s underwriting department for final approval.

Appraisal

A third party appraiser will evaluate your property in order to determine its market value. Not only is this important to you so you may be assured of the value of your pending purchase, but the lender must also consider the property’s value in order to approve the loan.

Underwriting

This is the final process by which the lender evaluates the entire loan application package and provides their decision. Any additional documentation or explanation required will be collected at this time in order to approve your loan. Upon approval, you are ready to close.

Locking the Rate

Actually, locking your interest rate may be done at anytime during the mortgage process and it is typically done within 30 days of closing. Until you decide to lock the rate, there is no way to know for sure what the final rate will be. Your Mortgage Consultant is an integral part of this process; however, the decision as to when to actually lock the rate is completely up to the applicant

Closing

This is the final stage of obtaining your loan. All documentation will be forwarded to a designated Title company which serves as the legally binding vehicle by which your mortgage is finalized and filed with the county and state. After all required signatures are obtained, the funding of the loan will take place and you become the owner of your new home!