The Loan Process: A General Guide.

1.      Application

2.      Ordering documentation

3.      Awaiting documentation

4.      Loan submission

5.      Loan approval (underwriting)

6.      Draw documents

7.      Closing

Components of a Mortgage

A monthly mortgage payment can contain several components:

•Principal:  The original balance of money loaned. 

•Interest:  The charge for the use (loan) of money. 

•Property Tax:  County assessor charges property tax based on your home’s value.

•Insurance:  Protection against loss resulting from certain hazards (ie theft or fire).

•Private Mortgage Insurance (PMI):  Loans with smaller down payments involve greater risk for the lender, who requires protection in case the loan goes into foreclosure.  Anything less than 20 percent down payment usually requires PMI.

Loan Application Checklist

The following information is typically needed when applying for a mortgage:

•Purchase contract and property information

•Personal information

•Employment history and income

•Assets

•Liabilities and debts

•Credit Report