The Mortgage Process

The loan Process can be decomposed in the following steps:

1 Find Property and negotiate the price

When your broker found a property to your liking you will submit a written offer which can be accepted, rejected or countered. If and when all parties agree and sign, the contract becomes valid. Down-payments are deposited in an escrow account and will be handed over to the seller at closing.

After signing a contract to purchase the property by law you have 7 business days from the day the contract is executed to apply for a loan.

2 Qualification for your Mortgage and Loan

Lenders traditionally require that your monthly mortgage payment (including taxes, insurance and condominium fee, if any) not exceed 28% of your gross monthly income, and that your monthly mortgage payment plus existing debt payments not exceed 36% of your gross monthly income.

3 Order of the appraisal-Verification of information

At application the loan officer will collect the money necessary for the appraisal and processing fee.. The appraisal will contact the seller, he or she will need to do a visual inspection of the inside and outside of the property. Along with the appraisal, a full credit report is ordered, along with verifications from your employer, landlord etc...

4 Submission for Underwriting

Once the loan application is completed, it will take 2 to 4 weeks to obtain the loan amount and to close the deal. The delay can vary depending on the lender . Indeed, the loan is sent to the lender to be underwritten, for a final commitment.

5 Mortgage Lender releases file for closing

Once all prior to closing conditions are cleared the file is released to close. At this point the Attorney or Title Company in charge will contact you so that closing can be scheduled.

6 Borrower and seller close

Only at closing (not at signing of the contract) the property changes hands against monies. The buyer does not have to be present if his lawyer or broker hold a proper power of attorney.

The Closing day is the culmination of your real estate transaction...the day the property changes hand

The buyer will be instructed to arrive at the closing with a cashier’s check for the determined amount. Once all the documents have been signed, the property is transferred. The buyer may move in on the date agreed upon between the buyer and seller as recorded in the sales contract.