Mortgage Loan Process

The mortgage loan process is something we are asked about everyday and many of you already are aware of. However, I wanted to post this as a reminder to those that do have questions. Remember all of this is available in PMG's "Buyer's Guide" available at http://www.pmg-inc.net/.

Mortgage Loan Process (Purchases)

Step 1. Getting prequalified for a loan with PMG

A. Application – this document will have you provide your financial information to PMG for processing your request
I. Full Name
II. Current Address (and previous if in current for less than 2 years)
III. Date of Birth
IV. Employment information
V. Income information
VI. All assets owned by you
VII. All debts owed

B. Credit report is pulled by one of our brokers and examined for loan programs for which you qualify

C. You supply documentation (as discussed later) for statements in application

D. We receive pre-approval from a lender and let you and your realtor know immediately the price range at which you qualify

E. Pre-approval letter is then created by us and given to your realtor for leverage in your negotiations with potential sellers


Step 2. Work with your Realtor to find a home in your price
range.

Step 3. Sign preliminary disclosures with your broker

A. Good Faith Estimate – This document will give you a good idea of the costs from all parties involved to get you into your new home


B. Lender Servicing Statement – This document lets you know the likelihood of your loan being sold to another lender after closing

C. Disclosure Notices – Various disclosures required by law to be give to potential borrowers outlining rights and responsibilities of the various parties

D. Truth-In-Lending – This document gives you an idea how much the credit will cost you as you pay it back to the lender

E. Borrower’s Certification & Authorization – This document has you certify that you are who you say you are and authorizes PMG and the lender to receive financial information from others who do business with you, i.e. to get bank statements, verifications of employment, etc.

F. Tax Return Request – This document allows the lender to request a copy of your tax returns to verify income if they are ever audited

G. Mortgage Loan Origination Agreement – This document explains your broker’s part in the transaction and lets you know how PMG makes it’s income


Step 4. Getting to closing

A. PMG Orders An Appraisal – These are required by lenders to verify that the property is worth the amount you are paying for it

B. PMG Orders Title Insurance – This is to insure that clear title to the property is given to you and the company is usually chosen by the seller as they traditionally are the ones paying for it

C. You Provide Property Insurance – You need to insure the property against loss and provide proof of doing so prior to closing

D. Your Realtor Orders Home/Pest Inspection – This should be done for your peace of mind regardless of whether or not required by the lender

E. The Lender Orders A Flood Plain Determination – This is required of all home loans to determine if you need to purchase flood insurance.


Step 5. At a Closing with a PMG Broker

A. All parties, both sellers and buyers, sign documents transferring property ownership to you – your PMG broker will be there with you to explain any process on which you have questions

B. All loans the sellers have against the property are paid in full

C. The warranty deed and deed of trust are recorded to notify the general public that you now own the property

D. CONGRATULATIONS! You now own your new home!

Brought to you by Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"