Process

The Home Loan Process

Our Loan Experts are with you every step of the way,
guiding you through the process.
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We are experts at making the Home Loan Process as
seamless as possible.
Transparency is key to closing a Mortgage loan successfully.
Whether you are a first time home buyer or a seasoned Real Estate investor, having a general understanding of each step within the process, with key dates and timelines to adhere to, will help close your Loan on time.

STAGE 1: 
Pre-Approval

Pre-Qualification
  • Getting Pre-Qualified is the initial step in the Mortgage Process, and it's generally fairly simple. On a short phone call, you will supply us with your overall financial picture, including your debt, income, and assets. After evaluating this information, we will be able to give you an idea of the size of the mortgage for which you may qualify and can advise you on your financing options.
  • Because it's a quick procedure – and based only on the information you provide to us – your pre-qualified sum is not guaranteed; it's just the amount for which you might expect to be approved. For this reason, being a pre-qualified buyer doesn't carry the same weight as being a pre-approved buyer who has been more thoroughly investigated.

Pre-Approval
  • A Pre-Approval letter from The Preferred Group Mortgage indicates that you qualify for a loan of a certain amount. A Pre-Approval is valid for 75-90 days.
get pre approved
  • After you have a pre-qualification from one of our Mortgage Advisors, you will move onto the Pre-Approval portion of Stage 1. More detailed information will be taken from you including: your current address, job history, and we will run your credit to determine your average credit score. This is a Seller’s market and you want to be taken seriously.
  • The Pre-Approval should be completed prior to looking at any homes and contacting a Realtor. By providing your Realtor a copy of your Pre-Approval letter, it shows your agent and sellers that you’re a serious buyer. It also allows your Agent to hone in on the properties on the market that you are qualified to purchase and has proven to be advantageous where sellers may be considering several offers.

Important Timelines and Dates to Remember:
  • A credit report is valid for 90 days. If the loan process exceeds 90 days, the report will be updated to ensure nothing has changed
  • Your Pre-Approval lasts for 75-90 days

STAGE 2: 
Making an Offer

Inform your Realtor that you have a Pre-Approval prior to looking at homes. This will help the Realtor research and find homes within your price range. If you do not have a Realtor, we can refer you to one of our partners. 
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Structuring the Offer
  • Once you’ve found a home you like, your Realtor will help you structure an offer that will detail how much earnest money (down payment) you plan to put down, and how much you plan to finance. Offers can include contingencies that can be negotiated upon prior to the contract being accepted.
Offer Accepted
  • Once the offer is accepted, the earnest money is given in the form of a cashier’s check and held in a secured account by the Seller’s Broker or Attorney.
  • If you want to order a Home Inspection, it is done at this time.
Attorney Approval
  • There are then 5 days of Attorney approval for both parties. During those 5 days the offer can be renegotiated on either party’s behalf. If negotiations or extensions need to be made, the Attorneys will request them at this time.
Offer Confirmed, Appraisal Ordered
  • Upon the end of day 5, the offer is then confirmed and the Appraisal is ordered
Important Timelines and Dates to Remember:
  • Within 24 hours of the offer being accepted, your earnest money should be placed into a secured account in the form of a Cashier’s Check. Account TBD by buying/selling Realtors & Attorneys
  • Within 24 hours of offer being accepted, order the Home Inspection if wanted. Inspection should be completed within 48 hours
  • Standard negotiations can take place for up to 5 days after the offer is accepted without additional extensions requested. If extensions are requested, closing dates and commitment dates will be pushed back.
  • Appraisal is ordered upon completion of Attorney Approval

STAGE 3: 
Application

Now it’s time to apply for your Mortgage and we need your help to move this step in the process along as quickly as possible!

Documentation
  • After you received your Pre-Approval Letter from us, you received a pre-emptive email requesting specific documents. If you haven’t already, it is now time to submit all requested information. Be prepared to provide: W2’s from the last 2 years; 1040 Federal Tax Returns from the last 2 years; 2 most recent paystubs; 2 most recent bank statements; and a copy of your Driver’s License (documentation for self-employed individuals may vary). You can either provide documentation in person or electronically. Our team can assist with documentation collection if needed.
Application
  • Once we have received all of your required documents, our Mortgage Advisors will analyze your personal situation and provide you with several scenarios and loan options available to you based on your qualifications. You will be able to choose the best fit for you and then your Mortgage Advisor will provide you with a Loan Estimate.
Loan Estimate
  • The day of your Application, our Mortgage Advisors will walk through the Loan Estimate with you line-by-line ensuring you understand all parts of the estimate. This can be done in person or via webinar depending on your preference.

Important Dates to Remember:
It is CRITICAL you DO NOT change anything in your financial picture during this stage.
This means:
  • No Major Purchases
  • No Applying for New Credit
  • No Change in Employment

STAGE 4: 
Underwriting

When you decide to move forward with your loan, a lot of behind the scenes work begins to happen.

Processing
  • Our team of Loan Processors will start to gather documentation about you and prepare it for the Underwriters.
  • With our Automated Software, we are able to keep you in the “know” every step of the way so that you are aware of what is happening behind the scenes with your loan (see Home Purchase Page “During the Loan Process”)
Underwriting
  • After our Loan Processors review the file and documentation provided, it is then submitted to the Underwriters. The Underwriter is the key decision-maker when it comes to approving your loan. All documentation is checked for accuracy and eligibility against the property type and loan product you have applied for.
  • Once reviewed, the Underwriter approves or rejects your loan.
Conditional Approval
  • This is an exciting step in the process! During the Conditional Approval Stage you receive the first indication that your mortgage loan will be approved, as it’s been initially reviewed by the Underwriter.
  • The Underwriters may approve your loan with certain conditions and ask for explanations. This is normal. Do not be alarmed or discouraged if this happens. Instead, be sure to accommodate these additional requests as quickly as possible.

Important Dates to Remember:
  • Any requests from the Underwriters should be responded to immediately to ensure the process continues smoothly.

STAGE 5: 
Clear-to-close

You’re almost there!

Final Documentation
  • During the Clear-to-Close Stage, the Underwriter double checks that all documentation has been provided and all conditions have been met.
  • The Preferred Group will prepare the final documentation that will need to be signed at closing and your loan officer will be reaching out to schedule a closing date.
Title Company
  • We will notify you once your loan is approved and will send your file to the Title Company for the actual close. It will look like a lot of paperwork but we ensure you understand every document included.
Closing Disclosure
  • The Closing Disclosure will look a lot like your Loan Estimate. You have a right to review the Closing Disclosure 3 days prior to close.
Final Walkthrough
  • A final walkthrough of the property is done by you 24 hours prior to close.

Important Dates to Remember:
  • 24 hours prior to close, you can do a final walkthrough of the property

STAGE 6: 
Closing

You made it!

Final Documentation
  • During the Closing Stage you will be signing the final documentation, and signing your title documents including: the Closing Disclosure, the Promissory Note, the Deed of Trust, and the Certificate of Occupancy.
Schedule
  • Schedule, at minimum, 2 hours on your calendar for the close and bring 2 forms of identification.
Closing Costs
  • You may need a cashier’s check if your closing costs are not rolled into the loan amount (we will inform you prior to close).
Record of Funds
  • Once you have signed everything, you’re done! The title company will complete the recording of and funding of the loan and you will receive the keys to the property.

Congratulations! You’re a HOMEOWNER!

Important Dates/timelines to Remember:
Cash-to-close gets discovered, at earliest, 24 hours prior to closing and as late as 1 hour before closing. This determines the amount to bring to the closing table. *all situations vary
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