The Mortgage Process

There are 6 distinct steps to the mortgage process

STEP 1: Pre-Approval Letter
Required by most Agents, at this stage the Loan Officer will require that the consumer provide income and asset documentation to determine mortgage qualification. For our preferred lenders, this initially requires providing Full Legal Name, Social Security Number, Date of Birth, and Annual Income.

STEP 2: Full Application
Once a property is selected and a contract is executed, the Loan Officer will request financial documents and update any documentation already submitted. The borrower will be asked to submit copies of 2 years of Federal Tax Returns, W-2s, pay stubs, and 2 months of bank and investment statements, address any credit inquiries or issues on the credit report, address any deposits that appear on bank statements in excess of $1000 (will require source documentation), and complete a full mortgage application package.

STEP 3: Submit to Processing
The Mortgage Processor will then review the package submitted by the loan officer. The processor will order a title examination, an appraisal, and any other requested documentation needed for Underwriting. If the Processor sees something that the Loan Officer missed they will request this documentation now.

STEP 4: Submission to Underwriting
Once the appraisal report is back, the processor orders a report to ensure that no party engaged in the sale has been involved in fraudulent activity in the past. This includes the borrower and their background, the appraiser, the attorney who prepared documents, and the real estate professionals involved in the transaction. The processor will also review all documentation prior to submitting for full underwriting approval. At this time additional documentation from the borrower may be requested.

STEP 5: Underwriting
The underwriter is responsible for reviewing the entire loan package and issuing an approval. Once again another set of eyes is reviewing all the details for compliance to all regulations and guidelines as established by state and national regulators. If questions or concerns arise, the underwriter can approve the loan but make that approval subject to additional documentation. Sometimes the loan can be approved and is ‘clear to close’ at first look.

STEP 6: Loan Approval
Even after the loan is approved, there are several more steps in the process where additional paperwork may be required.

After Underwriting and prior to closing the lender is required to conduct a ‘verbal verification of employment’ to insure that the employment status of the borrower(s) has not changed. Any discoveries at this stage that differ from the mortgage application as approved will require documentation and verification and could delay closing.
Days prior to closing the lender is required to run a ‘credit refresh’ to insure that no new debt or credit has been obtained by the borrower that may impact their mortgage qualification. The credit refresh may require additional ‘last minute’ documentation from the borrower.
If any of the documents at the time of closing are beyond 90 days old the borrower will be asked to provide updated documentation such as a pay stub or bank statement. If the credit report is beyond 90 days old it will be re-pulled which could also require a request for additional documentation or clarification.
After Closing, the loan is re-reviewed internally and by the end investor and at this time there could be another request for documentation.

Get Pre-Qualified!

The THORIN Group works with quality lenders whose values closely mirror our own. There are thousands of lending options available today and it's easy to get confused by the requirements and mandates put in place to protect consumers.

The links below are for lenders we have worked closely with and trust to take the best care of our clients. We receive nothing in return from these lenders other than knowing our clients are in good hands.

The mortgage process is complicated and there are many times throughout the process when a borrower could be asked to produce more and more information. It is important for consumers to be educated about the process and understand the reasons behind them. It is equally as important that Realtors and borrowers work with a thoughtful, thorough, and efficient lender to insure a quality experience and happy closing.