Loan Process
Now, let's dive into the mortgage loan process and what you'll experience. Here's a quick rundown of a typical mortgage loan process.
1. Work with a licensed loan officer to determine your best mortgage option! Check out our partner lender, Silvertion Mortgage!
2. Documents include, but are not limited to, bank statements, pay stubs, tax returns, and W2s.
3. Experienced Processor conducts verifications, then monitors the file through the mortgage process
4. Underwriter reviews loan, verifies guidelines are met, and issues a mortgage commitment
5. The last details finalized by the lender; borrower receive Closing Disclosure at least 3 days prior to closing
6. The final Closing Disclosure and the remaining paperwork are sent to the closing agent for execution on closing day
Let’s talk down payments. Here are some eligible sources of a down payment:
your personal checking & savings accounts
cash on hand (money you’ve saved at home)
retirement accounts (like your 401K or IRA) (Consult a tax adviser for further information regarding potential taxes and penalties.)
stocks and bonds
gift from a family member, close friend, or employer
proceeds from the sale of a home
tax return payouts
Here’s how 5 different home buyers came up with their down payment:
Hello, my name is Vince. My wife and I have been travelling for work for years and years. It’s been thrilling living in so many places but it’s time to finally lay down some roots. Plus, with rent practically being the same cost as a mortgage these days, we’re ready to invest in our future instead of our landlords…
Hi, I’m Juan and after 46 years of working, I’m excited to finally retire! To keep me busy, I plan on watching my two youngest grandchildren during the week. I’ve lived in the same house for 35 years – it’s way too big for just me and I’m looking to…
Hey, my name is Raj. I just graduated with my bachelor's degree and got my first big kid job at an accounting firm here in town. I am looking for a new place to live and plan on having some buddies from college life with me. Bonus, they can pay part of my mortgage…
Hi, I’m Dariah, and my life is beyond crazy right now. James and I are planning our wedding, I’m working extra hard to land a promotion at work, and we’re trying to buy a home in this crazy market. Let me tell you, living one more year in this apartment, wasting money on rent is not an option. After discovering I could pull money from my retirement account penalty-free…
Hi, my name is Maggie! My wife just got a new job in the area, so we sold our home and we’re moving to the Midwest! Our kids couldn’t be more excited. They are mostly looking forward to their first ever snow day. We’ve been looking for new homes and we found…
Debt to income
Most loans require that your expenses, including your new mortgage payment, don’t exceed a certain percentage of the income you bring in. They calculate this using a debt-to-income (DTI) ratio.
Total monthly payment/gross monthly income = DTI (debt to income )
$1000 + $300 + $200 / $4500 = 33% DTI
Example: $1000 rent, $300 car payment, $200 min credit card payment, $4500 gross monthly income
What to learn more about the various loan types? Pop over to Silverton's website for all the details!
want advice about your specific situation? get in touch with our partner lender, Silverton Mortgage!
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