Loan Process

The process involved in purchasing a home and securing a mortgage loan is often confusing and stressful for homebuyers. This section is designed to better explain how things work, why they work that way, and what comes next. I hope this section takes much of the guesswork out of the process for you and lets you rest at ease and enjoy the purchase of your new home.

The purchase process often begins with the all important decision to purchase a new or first home. Once you've made that decision, what do you do next? Getting pre-approved for a mortgage loan is the best and easiest first step. You don't want to fall in love with a house that you can't or don't want to afford. If you decide that you want to pay $800 per month but fall in love with that $200,000 home, buying a home can be a disappointing affair. If you get pre-approved first, you will know what price range to look at. This process takes 10 minutes with me either by telephone or through the Apply On-line option within this web site. I will need basic information regarding your personal situation, i.e. income, savings, employment, credit history, etc. I will need a quick credit report and often times can tell you within hours how much you are pre-approved for and what anticipated mortgage payments and closing costs will be.

Once the pre-approval process has been completed, I always suggest contacting a real estate professional. I've always found that it's best to find an expert, particularly when entering into one of the largest purchases in our lives. A good real estate professional can be found from many places - advertisements, friend and family recommendations, or I can suggest someone, if you like. This realtor will talk with you about what you're looking for in a new home and you can then tell them how much we've pre-approved you for. The search for the perfect home begins.

Once you've found that perfect home and enter into a purchase contract, our mortgage process kicks into high gear. We will need specific documentation to verify the income and assets used to pre-approve you. This documentation includes paystubs, W2s, sometimes tax returns, and bank statements. You will be given a very specific checklist of items pertaining to your individual situation.

We will gather this information, order an appraisal, and preliminary title report on your new property. Once we receive all the documentation requested from you and all other sources (appraisers, title companies, etc.), one of my staff will contact you to go over "final figures". This step is to re-verify your interest rate and loan terms as well as to give you an estimate of funds, if any, needed to close your loan. Once verified, your loan will go to the underwriter for its final stamp of approval, and loan documents will be drawn and sent to the title company. The title company will then work up all charges associated with the transaction for both the buyer and the seller and tell you exactly how much you will need to bring to the closing in the form of a cashier's check or certified funds. Your realtor will schedule your closing appointment at the title company, and once signed, your loan funds will reach the title company either by wire or check and all of the legal documents will be sent down for recording, and you will receive your keys! Congratulations on purchasing your new home!

Although you may have heard stories from others, purchasing a home can be this easy and fun! With Lance Dickson, we really do try to make purchasing a home something to enjoy rather than something to survive. If you have any questions about the process or where your loan is within the process, feel free to contact me!

Dream Ready