The steps are as follows :
- Pre-Qualification for a loan. A lender will review the basic financial information, such as income and debts. Then he will determine how much a borrower can pay for a house.
- Mortgage Programs and Rates. A mortgage professional related to the situation of the borrower recommends the most suitable mortgage programs and rates.
- The Application. The borrower completes the application and provide all required documentation.
- The Loan Estimate. It is a document that details the loan It estimates monthly payment, interest rate, total closing costs for the loan, and information about estimated costs of taxes and insurance.
- The Intent to Proceed. The borrower has to decide to move forward or to cancel the application.
- Processing. The processing of the mortgage begins.
- Required Documents. The borrower has to provide documents for his/her particular loan such as Social Security Number, Birth date, W-2 tax forms and tax returns for the last two years, names, and addresses and telephone numbers of his/her employers for the past two years, account number, and monthly payment and current balance.
- Credit Reports. It is an evidence of how you paid back the lenders that the borrower had borrowed money from, or how the borrower have met other financial obligations.
- Appraisal Basics. Once the borrower has found a favourite house that fits the borrower’s budget and has made an offer on it, a lender will order an appraisal on the property (valuation of the rights of ownership) as it is the collateral of the mortgage.
- Underwriting. The file is sent to the lender. If the loan is acceptable as submitted, it is put into “approved”.
- Closing Disclosure. Document detailing that the mortgage loan is selected by the borrower.
- Closing. Once the loan is approved, the file is transferred to the closing and funding department. Once the mortgage banker decides to approve the borrower’s loan application, the banker can decide to service the loan, meaning you make payments directly to the banker, or it can sell the loan, meaning the borrower makes payments to a different lender.
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 « Loan Process », Farmersbankhomemortgage.com.