Lending

The Mortgage Process

What to Expect

Buying a home is an exciting experience, but it can also be challenging if you don’t understand the processes and increased paperwork required by state and federal laws. We’ve outlined the 6 steps you’ll take when getting a mortgage. Knowing what to expect can help you have a stress-free mortgage experience.

 

Step 1 – You submit the Application

The Uniform Residential Loan Application captures information about you, your finances, and details of your potential mortgage. Early disclosures will be sent promptly.

 

 

 

Step 2 – Gather Documents

Gather your supporting documents. This information helps us determine whether your credit history reflects your willingness and ability to repay the loan and ultimately how much you can afford to spend on your home. We look to see that you have the reserves to make your payments should you suddenly lose your income. We'll let you know what documents are needed. Now we process and verify the information you gathered.

 

 

 

 

 

 

 

Step 3 – Processing (APPROXIMATELY 3 business days)

After the credit is approved, disclosures are prepared and given to you. We'll review your information at each stage to make it is complete and consistent which prepares your application for underwriting. If an appraisal is required, it will be ordered during this stage.

Now we submit your application to an underwriter.

 

STEP 4 – UNDERWRITING (APPROXIMATELY 10 BUSINESS DAYS)

Each loan will be sent to an underwriter who reviews the application, supporting documentation, financial information, sales contract, appraisal and title commitment to be sure all necessary criteria and regulations are met. Underwriting services are completed by a company not associated with MBT. The underwriter independently determines if all the terms and conditions of the loan can be fulfilled by the borrower within acceptable risk tolerances.

The Underwriter either approves your loan or requests more information (Clearing Conditions).

 

 

 

 

Step 5 – Clearing Conditions (APPROXIMATELY 14 days)

"Conditions" are requests by the underwriter for additional information in order to make a decision. If underwriters request additional information, don't delay. Requests could be a Verification of Employment from your workplace, proof of where your funds came from, or other unique requests.

Once conditions are cleared, we’ll issue a "clear to close" and your closing will be scheduled.

 

STEP 6 – THE CLOSING (30-45 MINUTES FOR REFINANCE, 1-2 HOURS FOR PURCHASES)

We’re here! This is the final step in the application process. Three days before closing, you will be provided a closing disclosure that includes the lender’s, attorney’s, realtor’s and title fees as well as taxes and insurance escrows.

 

 

 

Closing Day! Get out your pen and be ready to sign numerous documents.  Take the time to review the papers you are asked to sign including the mortgage or deed of trust, note and other various closing documents. The funds for your new home are disbursed and the transaction is recorded at the County Recorder’s office. 

 

Congratulations - the home is now officially and legally yours. 

 

 

 

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