1. Pre-approved or Pre-qualified 

Most people go to a Realtor first, but one of the first questions a Realtor will ask is if you have been prequalified or preapproved.  Getting qualified first will let you know how much of a home you can qualify for, your estimated payment and closing costs. It is no fun to find a home you love only to find out it is out of your price range or monthly payment budget!

2. Find a Realtor!  

If you do not have one, we have several we can recommend that have local knowledge of the area you’re interested in living.

3. Go shopping, find your next home, and submit an offer

Your Realtor is the neighbor expert and will assist you in negotiating and submitting an offer…along with your pre-approval or pre-qualification letter.

Your offer was accepted…now what?

You will receive your initial loan disclosures that will need to be signed electronically.  This will include your estimated payment, cash to close and a lot of legal mumbo jumbo documents that we are require to send.

• If you were pre-approved, this will be mostly a waiting period.  We may need some updated documents, but it should be minimal.

• If you were pre-qualified, we will need to collect all your documents to submit your loan for approval…income, assets, insurance, identification, etc.

...here’s what happens behind the scenes:

First, the loan originator prepares your file for underwriting and orders the appraisal (if required), Title, tax certificate, etc.

The information on the application, such as bank deposits and payment histories, are verified.

4. Conditional loan approval

After your loan is reviewed by an Underwriter he/she will issue a conditional loan approval.  These are typically minor conditions, i.e. appraisal, updated bank statements, pay stubs, homeowners insurance, etc.

5. Clear to Close

After your conditions have been received and approved, the Underwriter will issue a Clear to Close…your final approval!!!

6. Closing

A few days before closing you will receive your electronic initial closing disclosures (not your final closing disclosure) for you to review, you will not be allowed to sign yet.  On the day of closing, open the email again and you will be able to sign.  These are lending documents that are not required to be notarized.  This will minimize the number of documents to sign at the Title company.

Your assigned closer will work closely with your Title company to work on your final Closing Disclosure.  A lot of work goes on “behind the scene” to ensure all calculation are accurate.  Once this is completed you will be contacted with your final Cash to Close amount you will need at closing.  Depending on the amount, the Title company will need a wire or cashiers check.  

• IF YOU ARE SENDING A WIRE…contact the Title co for their wiring instructions.  When you receive them, CALL the Title company to confirm the information on their instructions, bank, account number etc.  This is to avoid any possibility for wire fraud.  It is better to be safe than sorry!!!

A few days before closing you will receive your electronic closing disclosures for you to review, but you will not be allowed to sign them yet.  On the day of closing, open the email again an dyou will be able to sign.  These are lending documents that are not required to be notarized.  This will minimize the number of documents to have to sign at the Title company.

7. Funding

After all parties have signed, the Title company will send your document to us to verify everything has been signed and dated.  Once this is completed, CONGRATULATION…you are a new homeowner!!!

Pre-Approval

Your income and assets have been received, your scenario has been submitted and approved by an Underwriter.  This can help speed up the loan process once you find a home and help avoid any surprises not found in the pre-qualification process.

Pre-qualification

Provides a estimate of how much you may be able to borrow based on the data you provided (no income or asset documents provided yet). Pre-qualification is usually faster and less detailed than pre-approval

Did you know when a Mortgage Company pulls your credit report, the scores will probably be lower than what you see from free credit reports you can get online?  This is because the credit bureaus use a different algarythm when your credit pulled than they do for consumer loans (personal loans, auto loans, personal inquiries, etc).

DO's

• Do write the Earnest Money check from your own account

• Do notify me if there are any changes to your employment (raises, promotions, etc)

• Do notify me if you will be receiving gift funds

Don'ts

• Do Not open or increase any credit cards or lines of credit

• Do Not make any cash deposits into your account

• Do Not transfer funds/balances between accounts; checking, savings, credit, etc

• Do Not change jobs or submit resignation

• Do Not make any large purchases, appliances, furniture, cars, etc.

Absolutely, we can help with refinancing by securing new loan terms that may lower your interest rate, reduce your monthly payments, or shorten the duration of your loan.  A good rule of thumb is, if you can reduce your interest rate by .875% or more then it could be beneficial to refinance.  Every situation is unique, so call me and we can discuss.

A 2-1 buydown is a financing option that temporarily lowers a buyer's mortgage interest rate for the first two years of their loan.

How does it work?

The interest rate is 2% lower in the first year and 1% lower in the second year.

How much does this cost?

The only way this will work for you, the buyer, is if it is paid by the seller or builder.  The actual cost will depend on the interest and loan amount.

An originator should answer all your questions upfront!  At Canopy Mortgage, we want to be educators, not just order takers.  We will assist you in discovering the most suitable mortgage options, terms, and guiding you through the application process.

Then we will collect your documentation and submit it to Underwriting for approval.

The timeline can vary, but typically you can get an answer the same day. Providing your income and assets upfront will help speed up the process.

Time to close will vary, but typically it takes 30 days or less.  

To help speed up the process make sure to get all you documents to your loan officer/originator as quick as possible.

Mortgage Originators are generally compensated through a commission from the lender, typically a small percentage of the loan amount. 

Yes, mortgage originators frequently have connections with individuals or companies who specialize assisting people improve their credit score. 

The documenttion will vary for each individual, but here are some basic documentation needed

• Proof of income (pay stubs, tax returns)
• W-2's
• Bank statements
• Driver's license

Yes, mortgage originators are regulated and are required to be licensed. Loan originators with mortgage companies are required to pass several mortgage-related courses and exams, giving them a deep level of knowledge in the field.

A bank is a depository institution that typically offers a variety of financial services and products, such as savings and checking accounts, credit cards and various types of loans — including mortgages. 

Mortgage companies focus specifically on home loans for purchases and refinances.

DSCR or Debt Covered Service Ratio loans are for investment property only.  Allows borrowers to qualify based on rental analysis to determine property cash flow. No personal income is required to qualify.