Residential Mortgage Process

Mortgage-debtSince there are a lot of real estate transactions involve loans, potential home owners should understand the residential mortgage process.   Although I’m not a mortgage broker/lender, the mortgage process is explained as follows:

  1. Pre-Qualification – “Pre-qualification” occurs before the loan process actually begins, and is usually the first step after initial contact is made.  In a pre-qualification, the lender gathers information about the income and debts of the borrower and makes a financial determination about how much house you may be able to afford.  We also refer to this as buying power.
  2. Application – Getting pre-approved is the next step, and it tends to be much more involved.  Borrowers complete the initial application and supply all of the supporting documentation.
  3. Processing – The loan processer reviews the file and makes sure that all the items that the underwriter will need is included in the file prior to submitting.  This typically includes having the property appraised prior to going to underwriting.  The appraisal should be at or above the sales price.
  4. Underwriting – The underwriter completely analyzes the file and makes a determination of the loan based upon industrial guidelines whether to approve, suspend, or deny the loan.  If the file receives “conditional approval”, the loan officer will contact the borrower and address the underwriter’s issues.
  5. Clearing Conditions – Any additional documentation required by the underwriter are sent to underwriting.  Once this additional documentation is received and reviewed, underwriting issues the “Clear to Close” status.  At this time, the closing ate and time is determined with the closing agent or attorney.
  6. Closing – Once you get the “Clear to Close” from the underwriting department, the closing agent or attorney will get instructions including all fees and documentation to fund the loan.  Once the documents are signed, the documents are sent back to the lender for final approval.  It should be noted that most lenders have a document that states if there are any documents are missing that the borrower complete those documents.

KW1784102f20KWThinking of buying or selling real estate?  You should consider using a realtor.  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.


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