Loan Process

Pinnacle

Mortgage Do’s

  • Continue making your mortgage or rent payments
  • Stay current on all existing accounts
  • Continue living in your current residence
  • Be prepared to secure all deposits
  • Ask us before making financial decisions during loan process
  • Alert us if your salary or other compensation changes

Pinnacle

Mortgage Don’t

  • Make any major purchases (i.e. car, major appliances, etc.)
  • Apply for or open a new credit card account
  • Transfer any balances from one account to another
  • Quit your job
  • Close any credit card accounts or change bank accounts
  • Run your credit before asking your loan officer first

Pinnacle Loan Process

Loan Application & Pre-Qualification

The completion of a full loan application is the first stage in the mortgage process. Once your application has been submitted, an experienced Mortgage Professional will assist you in understanding the many financing choices available to you. This stage of the process does not guarantee a mortgage approval, but it does provide the information needed to set reasonable spending restrictions.

Documentation

Underwriters must verify financial papers that support the mortgage application. 30 days pay stubs, 2 years complete tax returns, 2 years W2’s and 1099’s, photo IDs for all applicants, current checking and savings account balances, and recent retirement/investment account statements are examples of documents typically asked (but not limited to). Supporting documentation will be necessary if you have been through a divorce or bankruptcy.

Begin the Loan Process

You will meet with your Mortgage Loan Officer to discuss the various financing alternatives you may qualify for once all parties have agreed to the terms of the sales contract. You will sign the Loan Application and the Loan Estimate once the kind of mortgage and term have been chosen. This document is not 100 percent accurate in the early stages of the transaction, but it does provide you a realistic picture of the situation.

Home Shopping

Now that you’ve received pre-approval, you may start looking for your dream house! You might speak with a realtor about your requirements and compile a list of available inventory that meets your requirements. Eric will present your offer to the seller after the ideal home has been found.

Underwriting

The duty of a mortgage underwriter is to evaluate the risk of lending you, the applicant, money to buy a home. When deciding whether or not to approve your loan, they will look at things like your credit history, employment history and income, as well as your ability to repay.

Inspection & Appraisal

A skilled home inspector will be recommended by your Realtor to undertake a thorough inspection of the property. The inspector will assess the property for any structural and/or material flaws and give a written report detailing their findings. If the inspection report identifies items that need to be rectified, the Realtor can file a building resolution document with the seller, requesting that the seller rectify the defects or pay a credit for the repairs at closing. (As this is a voluntary inspection, USA Mortgage does not require a copy of the inspection.) USA Mortgage will arrange an appraisal on the property from one of our approved vendors. Underwriting requires an appraisal report since it serves as a collateral assessment of the property, guaranteeing the lender that the property value is comparable to the purchase price.

Conditional Approval

The file is sent to our Underwriting Team for assessment after the first documentation has been collected and the appraisal report has been produced. The Underwriter will usually provide a “approval” on the first assessment, but with some stipulations. These “conditions” are items on which the Underwriter requires more information. The final approval will be given once these conditions are met.

Final Approval

When Underwriting has signed off on all papers, the final permission is given. This final approval date must be met prior to the loan commitment date listed on the sales contract. Because this is a time-sensitive milestone, keeping motivated and supplying all needed information will allow us to make the loan commitment deadline and avoid any delays or extensions.

Closing

The loan closing appointment usually takes place at a Title Company and is when all of the Buyers sign the final loan and title documents. This will include the title transfer and any recording instruments that identify YOU as the new owner!
Reference Link -: https://usamortgagepros.com/loan-options/home-loan-process/