The Mortgage Process

Getting approved for a mortgage doesn’t have to be a long and drawn out process. When Solution 1Mortgage Corp. provides your home financing, the loan process is completed quickly and without hassle.

Solution 1 Mortgage Corp. is ready to make the home financing process as easy as 1-2-3. Below is a step-by-step guide to help understand the process:

Step 1 – The first step is to submit a Residential Mortgage Loan Application. You can submit your application using several options, depending on which is most convenient for you:

• Give your information to a loan officer by phone,
• Mail your application,
• Fax your application, or
• Visit our office.

No matter how you choose to submit your application, you will work with an experienced Solution 1 Mortgage Corp. loan officer throughout the entire loan process.

When your application is received, the first things we do are pull credit and gather supporting information. This is referred to as the “processing of the application”.

During the processing stage, your loan application will be submitted to an automated underwriting system such as Fannie Mae’s Desktop Underwriting or Freddie Mac’s Loan Prospector. The use of these software systems has become an industry standard. The review of your loan is much more standardized and quicker due to the use of these systems. The amount of paperwork required to get a loan approval has been reduced, making the process more efficient.

An appraisal of your property is ordered during processing. This step is necessary to determine the value of the home you are purchasing or refinancing. The appraisal is completed by an independent fee appraiser that is approved by Solution 1 Mortgage Corp.

We will provide you with a Good Faith Estimate of Closing Costs and a Truth in Lending Disclosure. These important documents help you review the estimated costs you may incur with your pending loan transaction. Be sure to review these carefully and ask your loan officer about anything that does not make sense.

Step 1 – This next phase, Underwriting, occurs only when all necessary documentation has been received. During Underwriting, the file is reviewed to make sure it meets the guidelines of the specific loan program for which you are applying. Underwriting reviews:

• Credit – how well you have paid your debts in the past.
• Capacity – your actual ability to repay the loan based on your income and other debts you are paying.
• Collateral – the value of the property you are buying or refinancing and are pledging as “collateral” for the loan.

While we try to obtain all required documentation prior to underwriting, additional documentation may be required during the process. In underwriting, your loan will be approved, denied, or suspended for further information.

Step 3 – If the loan is approved, you are ready to move to the final stages of the process, called closing. Solution 1 Mortgage Corp. works with the closing attorney to prepare the documents required to close the loan. The attorney prepares the HUD Settlement Statement that tells you how much money to bring to closing. The funds need to be a Cashiers or Official Check made payable to the closing attorney. To close the loan, you go to the attorney’s office. Closing is simply the signing of the legal papers to formally complete the loan transaction and for the loan proceeds to be disbursed.

Closing culminates the loan process. Shortly after closing, you will receive information about the schedule of your monthly mortgage payment. It is wise to go ahead and make your first payment at the time it is due regardless of whether you have received information about your billing. During the closing process, you will be given a First Payment letter that lists the correct payment and the address where your payment should be sent.