fbpx

Buying a Home
ANATOMY OF A HOME LOAN

Like a home, a mortgage is made up of many parts. What is the role of each one? Let’s break down the anatomy of a home loan to find out.

The Foundation: Apply & Gather Financials

Every home needs a strong foundation. Applying for a mortgage is like pouring the first footing of your home loan. As you gather your financials, you build up a strong mortgage foundation.

This stage is also your opportunity to get qualified1 for a home loan. How? You can connect the necessary financial accounts and documents to our secure online application tool.

The key points to expect in this phase of the loan process include a credit check, document verification, comparing loan options, declaring a down payment, and getting your loan estimate, among other milestones. Once you’ve reached all the benchmarks, you can start shopping for your home with confidence.

The Front Door: Appraise & Verify Property

Once you’ve found your future home, it’s time to make sure everything is in order. An appraiser will need to assess the property so your lender knows how much the home is worth. This is key as lenders can’t give a borrower a loan that is higher than the home’s value.

While your appraisal is happening, there will also be a property inspection. This is crucial to finding, or ruling out, any problems in the home like faulty wiring or mold. In addition to your appraisal and inspection, a title search will be run on the property. This will uncover if anyone other than the seller has a claim or lien on the property.

The Garage: Process & Underwrite Loan

Getting you one step closer to closing time is the loan processing and underwriting. This is when your loan gets reviewed along with any other documents that have been submitted. The underwriter may ask some clarifying questions at this point as well about things like bank statements or more documentation.

Once the processing and underwriting is complete, you can lock in a rate, order title insurance and schedule your closing day. Be sure to keep track of your loan’s status in your online application for the most up-to-date progress.

The Roof: Close

Closing your loan seals the deal on your mortgage, kind of like a roof closing in a house. A good roof keeps the house safe and closing your loan locks in all the details.

You will be able to review your closing documents (closing disclosure) days in advance to make sure everything matches up. It’s also your chance to ask any questions before closing day actually arrives. As part of your online application process, you can sign most of your documents from virtually anywhere on a smartphone, computer, or tablet. The rest will be finished at your closing meeting.

Now that you have a completed home loan, it’s time to move in and relax! Unpack the boxes, plan your housewarming party, and enjoy the next chapter of your life.

1All loans subject to credit approval. A qualification is not an approval of credit, and does not signify that underwriting requirements have been met. Conditions and restrictions may apply.

Written By Becky Bruning