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THE MORTGAGE PROCESS - BEHIND THE SCENES

© Whitni Smith

So, here you are. Waiting. Anticipating. Trying not to hyper ventilate! You're probably wondering what's taking so long to get the answer from the mortgage lender. You're probably convinced that something must be wrong and that your application is being declined. What's the hold up?!

Ok, take a deep breath and relax. Once you've completed the application and provided the standard documentation, the real mortgage process begins. This process can last anywhere from 15 days to 45 days. There are many things that have to happen behind the scenes. Grab a cup of coffee, a cold one or a nice stiff shot and let me walk you through the process.

VERIFICATION OF INCOME AND ASSETS

(1) The loan processor has to make sure that all of the required documents verify what is stated on the application. Some lenders actually mail out verification forms for employers and financial institutions to complete and mail back with current information. This can slow down the process a great deal since you're waiting on a third party.

(2) A tri-merged credit report (a credit report from all three credit reporting bureaus) is ordered and formatted to delete all duplicates, errors, etc. This can take a few days to get if there are some major creditors not reporting. Once it is received, derogatory information must be addressed and cleared up if possible.

(3) An appraisal is ordered from a local appraiser. Some lenders wait for the credit report and verification documents before incurring the cost of the appraisal, which is nice since it's your money that they're spending. On average, appraisals take between 5 and 10 days to get. However, I have seen them take up to a month when the property was located in a rural area.

(4) A preliminary title report is ordered, which means that a title search is underway. Normally this takes about 3 to 5 days. It can take longer however, if there are any judgements or liens on public record against you or the seller.

(5) Once all of the documents are gathered and the processor has all of your information verified, she submits the whole package to the underwriter to review.

(6) The underwriter has to review every document to make sure that all of the numbers are correct and to determine if your mortgage request meets the lender's lending criteria or guidelines.

(7) Once the underwriter has determined that your borrower profile meets the lender's criteria, she will review the appraisal and title report to make sure that the collateral is acceptable. The collateral is the house itself.

The copyright of the article THE MORTGAGE PROCESS - BEHIND THE SCENES in Financing a Mortgage is owned by Whitni Smith. Permission to republish THE MORTGAGE PROCESS - BEHIND THE SCENES in print or online must be granted by the author in writing.