This video outlines what to expect after you’ve applied for a mortgage loan.
There are 6 required pieces of information for a mortgage loan application, covered in another video here on Video-Genius. Some lenders may request additional information at the time of application, or later. Once you have supplied the 6 required pieces, lenders have to provide a Loan Estimate in 3 business days.
Lenders will verify the information you provide, through actions like credit checks, credit history and employment verification. Most lenders must follow these steps, to assess your ability to repay. (Don’t be offended by verification — it is required.)
Once information has been verified, and processes like underwriting completed, the lender will make a decision about loan approval.
If the loan IS approved, they will deliver a Closing Disclosure detailing all of the costs and terms. If you have a Closing Disclosure already, there are videos here that cover all of the pages and details to help you make sense of it. The Closing Disclosure itself must be delivered to you, 3 business days prior to consummation of the loan.
The lender will usually set a date for that loan consummation process; this may also be your closing meeting. For clarity — closing essentially means “transferring ownership”, and consummation basically means “committing to the loan.”
Once you have completed both of these, take a breath and pat yourself on the back! Successfully buying a home is a big milestone. Hopefully you remembered to get the keys so you can start transforming “the property” into your home.