The process of getting a mortgage is fairly simple. Generally the most important step is determining the purpose and the benefit of the mortgage. Every client is different, we take the time to discuss the purpose of the mortgage and the benefit to determine the most appropriate loan program, closing cost scenario, and interest rate. Everyone always wants the lowest rate and the lowest fees. But the problem is you will never get both, unless you find a non-profit mortgage company. (which does not exist) The lowest rate is typically most appropriate for a client who intends on keeping the particular property and mortgage for a long period of time. The lowest closing costs is typically most appropriate for a client who only intends on keeping the property or mortgage for a short period of time. Every recommendation prepared by World Trade Mortgage is quantified by a mathematical comparison. This allows us to verify that our clients were able to make an informed decision for their mortgage.
Loan Application & Credit Report
Completing the loan application is an easy step in the process. This can take anywhere from 7 minutes to an hour. Usually the more time we are able to spend with a client during the loan application the more time we can save the later in the process. It is important that the details of the mortgage application are precise. Completing the mortgage application is the best time for the loan officer and the client to determine if they can work well together. It is important to have a loan officer that listens to every detail from the client. Unlike other mortgage companies, we do not charge an upfront fee for completing the loan application. In fact we don’t get paid until we have provided you with a mortgage. After the mortgage application is complete, we will pull a credit report to evaluate your credit scores, your credit profile, and your debt to income ratio.
After a loan officer completes a loan application and pulls a credit report, they are ready to submit the file for initial approval. Often times these approvals are completed through an online automated underwriting system at Fannie Mae, Freddie Mac, or at a specific Wholesale Mortgage Lender. An Approval is as good as the information used to obtain it, which is why it is so critical the loan application is precise. Once your loan officer has obtained an approval they will call you back to discuss the details of the approval.
Order Appraisal and Title
Once a loan has been approved and a client decides to proceed with the mortgage, your loan officer will order an appraisal on the property and order title insurance. The appraisal is the one expense that our clients are responsible to pay out of pocket directly to the appraiser or appraisal management company. The fee for an appraisal typically costs around $400. Title Insurance is something required by Mortgage Lenders to ensure the title of the property is free of any liens or encumbrances. The title insurance is usually ordered by the loan officer or a realtor. However, it is the clients legal right to work with any title company they choose.
Review by Mortgage Processor
Once your appraisal and title has been ordered, its time to get started. A mortgage processor is responsible for reviewing the loan application and approval to see what documents are required by underwriting to approve the loan for funding. Our processors will request these items from you and will keep your loan officer posted with progress. Once the appraisal has been completed and all loan documents have been received and reviewed by the processor, they will contact the loan officer to review the file one final time before it is submitted to underwriting.
Review by Underwriting
After the Mortgage Processor has submitted the file to Underwriting we sit back and wait. The underwriter will review the loan application, the approval, and every line of every document submitted. Typically an underwriter will request additional documents after they have reviewed everything.
Clear to Close
Once an Underwriter has signed off on a loan, the loan has been ‘cleared to close’. The Underwriter will forward the file to the closing department, and they will begin preparing all of the necessary documents for closing. The closing department works closely with the title company during this process. The Closing Department typically needs 24 to 48 hours before we can close on the loan.
This is the finish line. At settlement the Closing Agent will review every document with you to make sure you understand the details of the mortgage you about to sign, and all of the obligations and restrictions associated with it. World Trade Mortgage has always believed that it is better to have the closing agent conduct the settlement rather than the actual loan officers. We do this for two reasons. The first is simple, a closing agent conducts settlements all day long and knows the legal documents inside and out. This allows you to complete your settlement within an hour. The second is a final layer of protection for both you the client and our company. We require the closing agent to conduct the settlement to make sure that the client has an opportunity to review the terms of the mortgage with a non bias third party.
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