Mortgage Process

Mortgage Banker

A company that originates mortgages using their funds.

Mortgage broker

One who, for a fee, brings together a borrower and lender, and handles the necessary applications.

The Mortgage Process

"Loan Status Report" ("LSR") is provided by a mortgage company and reports if the applicant is qualified and what the ceiling is on the purchase price. Also, the "LSR" will be submitted to the seller along with the purchase contract when you make an offer on a home.

The loan application starts after finding a home and negotiating an accepted purchase contract signed by buyer and seller. The application consists of personal information and documentation such as income, years on the job, outstanding loans, checking and saving account statements, pay stubs, etc.

An appraisal is ordered to verify the value is equal to the selling price along with a preliminary title report which gives the property history and lien status.

All this information is packaged and sent to underwriting and processing where it is assembled and verified; Then to the closing department who draws up the loan documents and closing instructions to the escrow company.

The last step is signing loan documents supervised by the escrow agent. The signed documents are sent back to the mortgage company who transfers the funds to the escrow company. The seller is paid and the deed and promissory note are recorded at the county accessor's office. Time to move in.