STEPS TO SECURING A CONVENTIONAL MORTGAGE LOAN
Below is a brief summary of the mortgage loan process. Please note, this process is not concrete and certain steps of the process may change based on individual situations.
- Potential borrower completes loan application, though MJW website or speaking to an MJW loan officer
- MJW pulls credit of potential borrower
- Potential borrower sends in income and asset information to MJW for verification (see list below)
- MJW sends pre-approval letter to real estate agent and borrower – which allows borrower to start browsing potential homes
Loan Process Begins
- Borrower puts offer on potential home
- Accepted purchase contract is sent to MJW by borrower and/or real estate agent
- Simultaneously, borrower contacts insurance agent to get initial quote for new home purchase. Borrower provides MJW with contact information for insurance.
- MJW discusses rates with borrower
- Initial disclosures – which include information previously sent plus additional information requested by loan officer
- MJW submits to underwriting.
- MJW orders appraisal of potential home
- MJW receives initial underwriting approval with conditions (i.e. additional items the underwriter is requesting for verification)
- MJW sends back appraisal and conditions to underwriting for review
Additional Requests by Underwriter
- If underwriter has additional request after initial conditions are reviewed, borrower to provide additional documents
- MJW sends back to underwriting for further review.
- Refer to number 3 above for following steps
Clear to Close Issued
- Closing documents (i.e. financial loan documents, mortgage, note) ordered and sent by MJW to title company
- Title company prepares Closing Disclosure Settlement statements (i.e. a document that shows all fees being charged)
- Lender approves Closing Disclosure and sends wire information to title company for closing. Borrower is provided copy of Closing Disclosure so they can prepare for financial closing
INCOME AND ASSET DOCUMENTS FOR PRE-QUALIFICATION
Do NOT black out or cross out any information on documents or they will not be accepted by underwriting. Additionally, please make sure all submissions via email are in .pdf format.
Must reflect the last 30 days and include: borrower name, company name, company address, pay period, pay date, salary/wages, current payment information, year-to-date information.
Must reflect the last two months (NOTE: If a retirement account is included, must be quarterly statement). Must include: borrower’s name, address, account number, bank name. All pages in numerical order, even if blank. NO ONLINE PRINT OUTS ACCEPTED!
W-2 and Federal Tax Returns
Must include documents for the last two consecutive years (all pages/schedules). NOTE: Self-employed borrowers will need copies of all K-1s if ownership in business is 25% or more; copies of all pages of business returns will be required.
Must be legible. Must be provided by all borrowers/co-borrowers.