Mortgage Lending Process
Individuals, couples and families with the dream of homeownership might feel overwhelmed to start the process of financing a new house, condo or other residential property. At Bethpage, we’ve guided many members through the experience of obtaining a mortgage. Our team of experts is qualified and knowledgeable to answer any outstanding questions you might have about getting approved for a mortgage.
Here’s a step-by-step guide to explain the process:
Step 1: Apply For the Loan
Once you’ve selected a lender, the next important step to take is to apply for the loan itself. A standard loan application requires homebuyers to present the following information for review:
- Borrower Information: These are the basics about you including current address, marital status and dependents, social security number, date of birth and whether you currently own a home.
- Property Information: This includes the address of the home you’d like to buy, a legal description of the property, year built and details about your intended use of the home. For example, you might see the new place as a vacation home, primary residence or investment property.
- Assets: The application requires a list of assets to determine the source of the down payment and closing costs.
- Liabilities: This field indicates any outstanding debts, including how much you owe and to whom you owe it. A lender will cross-check this section with a credit report and you’ll have the opportunity to review that information and make any corrections.
- Declarations: In this section, a prospective homebuyer addresses further questions about his or her financial history, including declarations of bankruptcy, judgments against the individual, citizenship and other matters.
Step 2: Credit Request
- A credit report is obtained to verify the information you’ve presented on the loan application.
- In many cases, you can get an immediate credit approval of your loan request.
- A specific loan amount and loan program is approved based on your income and debts.
- The loan is legally subject to underwriting the property you are financing.
- If inaccurate information appears on your credit report, our experts can guide you through the process of contesting and clarifying those errors to improve your chances of obtaining a mortgage.
Step 3: Loan Application Processing
- When the loan is processed, the information provided on the application is verified. The minimum documentation to verify assets and income will be requested.
- The property will be reviewed by ordering an appraisal, title report and flood certification on the home.
- Bethpage collects a non-refundable application and appraisal fee up front.
- An escrow account is set up for the loan closing and applicable disclosures will be sent so you have a chance to read through them.
Step 4: Final Loan Approval
- Final loan approval involves the underwriting of the property and loan application information.
- The lender will underwrite the information received and give final approval to ready the loan for closing. A mortgage loan can be reviewed multiple times for outstanding conditions after a commitment letter (approval) has been issued. Only when a loan is cleared from Underwriting (after final review) will documents be prepared for closing.
Step 5: Signing, Document Approval and Disbursement
- With final loan approval, the loan documents are prepared for you to sign and are then sent to an escrow company for signing.
- Once all signed documents are received, your lender will transfer the money to the escrow company and will disburse the loan and record the documents.
At Bethpage, our team of professionals can guide you through the lending process to secure the right loan for your new home and current financial situation. Whether you need to ask us a question, begin the application process or learn more about our experts, visit our mortgage center today.
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