An overview of the loan process - The Texas Mortgage Lady

An overview of the loan process

Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is do most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home, saving money, or making plans for your home equity check.

HUD's new settlement costs booklet, "Shopping for Your Home Loan," was released on December 16, 2009 and it covers the new GFE, HUD 1, and MDIA disclosures. The entire mortgage application, closing and servicing (the loan) process is all explained in a 49-page booklet and it's really GOOD!

Here are the highlights:

Pages 4 - 8 specifically talks about the home buying process
Pages 11-18 "Your GFE Step-By-Step" explains the GFE
Page 21 Your settlement and HUD1
Page 36 - "Determining What You Can Afford"

The booklet is only required to be given to someone who is purchasing a home, but it has loads of valuable information for anyone thinking about purchasing in the near future.

Basically, there are four main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.

Step one: Determine how much you can borrow

This is a function of a couple things. How much of a monthly payment can you afford? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the calculators on our website. We'll also help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we'll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step two: Get Pre-Approved for your loan

This is where the rubber meets the road and you save the most money. By completing an online application, you supply information about your employment, your assets, your residence history, and so on. We run your credit report and give you a list of the supporting documentation needed for your loan. Once we have the supporting documentation, we will review everything and give you a Pre-Approval Letter. Handle it with care -- to a home seller, it's like a suitcase full of cash! Your Realtor will use your Pre-Approval to make the best offer on the home you choose, and the seller knows you are serious because you've already lined up your financing. It gives you buying clout! And while you're picking out the home that's right for you, we're busy finding the loan that's right for you.

Step three: We make it easy

Once you've made an offer, and it's been accepted, everyone (the loan officer; processor; title company; surveyor; appraiser; underwriter; etc.) behind the scenes gets to work. All you have to do is get your inspections done and decide who you want to use for your homeowner's insurance.

Step four: You go to closing to sign everything and your loan is funded

Your realty agent and the seller's agent will work together to designate an escrow/title company to handle the funding of your loan once it's approved. We'll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you'll sign everything at the escrow/title company's office.

You've answered a few questions, applied online, given us some detailed information, and next thing you know, you're moving in! We're in the business of mortgage loans, you're not -- so we do most of the work. Doesn't that make sense?

If you think someone you know would find this information valuable, please click on the share button above and share it with them! Thanks!

Denese Weems, Mortgage Banker, dir 512-394-8030 cell 512-567-6986 fax 866-530-9183

Lending Programs, Including Rates and Terms, are subject to change without notice. Information requested and/or application for a loan is not a guarantee of loan approval.