What is the process or procedures for obtaining a home loan?
The first step is to contact a loan officer and request a pre-approval. You will need to provide your personal information: Name, social security number, date of birth and citizenship status. You will also need to provide a 2 year residency and employment history, your income and your assets.
The loan officer will pull your credit, and let you know how much you qualify for based on your credit score, income, debt and down payment. If you are pre-approved, you will need to provide the following documentation:
1 month most recent paystubs
2 years w2's
2 years full signed tax returns
2 months most recent bank and asset statements
12 months canceled checks to prove rental history or mortgage history if it is not on your credit report
You will also sign all of the preliminary loan disclosures
The loan officer will submit this documentation to the underwriter who will obtain and review title insurance as well as an appraisal for the home. The underwriter will condition for any additional information and documentation for you to provide, and upon final review they will issue a clear to close the loan.
At that point a closing will be scheduled at the title company, where you will sign all of the final documents for your loan.
If it is a purchase, the lender will wire the money after the seller signs the documents, and if it is a refinance the lender will wire the money 3 days after the loan closing. At that point, the loan is funded and complete.