Mortgage Loan Process
Imagine. No phone trees or confusing corporate red tape. Customers enjoy a one-on-one relationship with a trusted advisor who walks them through the process and keeps them informed and up to date every step of the way.
Seven steps of a home mortgage loan:
Step 1: Pre-Approval
This is the start of a long, long friendship. Pre-Approval gives eligible customers the likely assurance of a loan even before choosing the home. This is done by verifying the ability to repay a mortgage loan and provide the cash needed to close – by reviewing and documenting supporting documents for income, assets and credit history. Guardian makes a pre-approval decision based on the application, credit report and financial verification document provided by the customer. Once pre-approved, borrower(s) have the peace of mind to house-hunt within a comfortable price range. Sellers can deal with pre-approved borrowers with confidence in their ability to pay – the next best thing to an all cash buyer.
Refinancing? Start here!
Step 2: Loan Options
Many good things start with pen and paper (or a computer). A mortgage loan application is one. At this step, Guardian first verifies the ability to repay the home loan – with consideration to income, assets and credit history. This goes beyond just the actual application, to collecting the supporting documents needed to verify the borrower is eligible and qualified for the loan based on lending guidelines. Once successful, the loan officer locks in an interest rate for the customer – capping the rate at that percentage. Then pen meets paper.
Step 3: Loan Processing
Loan applications move through the system like dominos, tipping several next steps into motion. Employment is verified. A residential appraisal is ordered for the property value. Title work is ordered from the title company. Additional documentation and insurance information is collected. Feet shuffle. Phones ring. Mice click. Those are the sounds of a quick, organized staff acting as a partner that you can trust.
Step 4: Underwriting
Yes? No? Using the gathered data, documents and appraisal, underwriters determine whether or not a loan presents an acceptable level of risk – the final approval/rejection for the mortgage – and meets all required guidelines for the loan program. A third option is approving with conditions, which will need to be “cleared” by collecting more information or documentation from the borrower. Once the approval is given (without any remaining conditions) the file then goes to the Closing Department.
Step 5: Closing Documentation
You’re almost there! At this step the loan file goes through a pre-closing review for quality assurance and the closing instructions are prepared. The Homeowners Insurance and Tax Certificate are reviewed. Closing date and time are confirmed. The closing documents are prepared and delivered to the title company.
Step 6: Loan Closing
The Borrower receives an approved HUD-1 Settlement Statement 24 to 48 hours before close. The customer, a title company representative and Guardian Mortgage loan officer meet to sign and make copies of the mortgage loan documentation. A cashier’s check or wired funds are sent to the title company to fund the loan. Then … Congratulations!
Step 7: Loan Servicing
Now the long term relationship begins. Sit back and relax as we take care of the administration aspects of your loan. Just continue to make timely payments on your mortgage and we take care of the other details like maintaining accurate records of the loan balance, collecting escrow funds to pay property taxes and insurance, sending you the tax and interest statement (1098 Statement) for taxes and much more. We’re real. We’re personal. Forget the “call banks” and temps using a script. If you have a question, give us a call. A real mortgage professional is sure to answer.