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The Mortgage Process

  • sofeeroze
  • Jul 18, 2022
  • 3 min read

Updated: Aug 3, 2022




Getting a mortgage can be a daunting decision. There is a broad range of loan products and you’ll need to gather a lot of documents to apply for the loan that you choose. But, like anything that seems overwhelming, it is important to break down the mortgage process into bite size steps that can be focused on one at a time. Here are the five steps of the mortgage process at Hometown Lenders NW.


Step 1: Loan Application & Pre-Approval


The very first step of the mortgage process is submitting a loan application with your lender. In the application you’ll be asked to fill out simple information such as name, address, social security number, income, length of job history, and some legal declaration questions. At the end of the loan application step, you’ll be asked to submit some supporting documentation to prove that you are who you say you are, and you make as much as you say you make. The lender will then review your application and documentation and will issue you a pre-approval letter. With this letter you are ready to move on to step 2.


Step 2: House Hunting & Contract


Finding the right home for you can be the longest part of the entire mortgage process. With bidding wars, little inventory, and rising prices, it might take a while to find the right fit. Once you submit an offer on a property and all parties have signed the purchase and sale agreement (PSA), you are officially under contract!


Step 3: Complete Loan Processing


At this point in the mortgage process, your lender will go through your loan application and verify the information you’ve provided to them is still accurate. This may include ordering a verification of employment, verification of bank deposits, a property appraisal, and a title search. Once the lender receives all requested information, they will submit to underwriting.


Step 4: Underwriting


Underwriters are the key decision makers in the mortgage approval process and are the ones who give you the final approval for our mortgage. This step in the mortgage process might seem the most foreign to you as a borrower since you will likely not communicate directly with the underwriting team. Their final decision may be approved as it proposed, reject it, or approve with conditions. If the loan is approved with conditions, that simply means the lender will communicate with you what additional items need to be crossed off in order to get the final approval.


Step 5: Closing & Funding!


If your mortgage application is approved, it’s now time for closing! The closing team will provide official instructions and will send the loan documents to the title company. You will need to obtain a cashier’s check or wire transfer for any funds required at closing. The loan funds and monies are dispersed when all parties have signed, and acceptable documentation is returned to the closing team.


Closing Thoughts: When talking broadly about the home loan process, it can seem like there are a lot of steps and a lot of room for the process to hit bumps in the road. However, with our team at HomeTown Lenders NW, we are proactively looking out for your and your loan, ensuring we catch anything before it happens. With a tight grasp on the mortgage process, we hope you find the process not only simple, but also fun and exciting!


 
 
 

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Hometown Lenders NW is a division of Hometown Lenders, Inc. NMLS# 65084 | (www.nmlsconsumeraccess.org) | Terms, conditions, and restrictions may apply. Loan products are subject to availability and credit approval. Not a commitment to extend credit. Hometown Lenders USA AZ BK-0949142. Licensed by the Department of Financial Protection and Innovation. Company License # 41DBO60614

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Hometown Lenders is licensed under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking Texas Mortgage Banker Disclosure – Figure: 7 TAC 81.200(c) “CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”

 

205 ILCS 635/2-9 Posting of license
The license of a licensee whose home office is within the State of Illinois or of an out-of-state licensee shall be conspicuously posted in every office of the licensee located in Illinois. Out-of-state licensees without an Illinois office shall produce the license upon request. Licensees originating loans on the Internet shall post on their Internet web site their license number and the address and telephone number of the Commissioner. The license shall state the full name and address of the licensee. The license shall not be transferable or assignable. A separate certificate shall be issued for posting in each full-service Illinois office.

Licensee shall post on their internet web site the address and telephone number of the IDFPR.

James R. Thompson Center
IDFPR-Residential Mortgage Banking
100 W. Randolph, 9th Floor
Chicago, Illinois, 60601
Tel: (844) 768-1713

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