Mortgage Process Step #3
What to expect from
processing & underwriting
What to expect from processing & underwriting
As soon as your purchase offer has been accepted by the seller, the clock starts ticking on a number of tasks that have to be completed within the “due-diligence” period, a timeline detailed in the purchase contract. A full underwritten approval by the lender, an appraisal, and home inspections (depending on the loan type and contract) are the first three major requirements that need to be met when purchasing a home.
A few items obtained during the underwriting stage:
- Appraisal
- Updated Title
- Escrow Amounts
- Loan Payoffs
- Additional Property Liens
- Taxes
- HOA Paperwork
- Additional Loan Paperwork
Mortgage Loan Process
Step 1: Loan Application & Documentation
Step 2: Review
Step 3: Preapproval
Step 4: Accepted Offer
Step 5: Finalizing Your Application
Step 6: Appraisal
Step 7: Underwriting
Step 8: Clear To Close
Step 9: Wire Funds For Closing
Step 10: Final Closing Disclosure
Step 11: Closing
Please feel free to contact us at any time if you have any questions about your loan status or next steps in the process.
Things to know
It’s important to have all of your updated paperwork ready to go as soon as possible. This may mean providing updated pay stubs and bank statements the moment they become available throughout the underwriting process.
The underwriters will evaluate the property, title, and the information and documents you provided once your final loan package has been submitted. This can take anywhere from a few days to several weeks to determine final approval and a conditions list, which could include a final letter of explanation for findings on a credit report, an official verification of employment, and an updated hazard insurance policy provided by your home insurance agent.
Please do not make changes to credit or employment, such as:
- No major movement in your bank accounts
- No new credit applications or paying off old collections
- No financing new furniture and/or appliances
- No changing your employment status
Ready to learn more?
Review the previous step in the mortgage process.
Learn about the next step in the mortgage process.
Check out what your monthly payment could be by using our general Mortgage Payment Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Principal & Interest (P&I)
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PMI
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Taxes & HOA
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Homeowners Insurance
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Purchase Price
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Down Payment
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Total Loan Amount
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PMI
The PMI (Private Mortgage Insurance) is a mortgage lenders' protection in the event of a default. PMI is paid monthly as part of your mortgage payment to the lender. Once a borrower has paid the equivalent of the 20% down payment, PMI can be removed from the monthly mortgage payment.
Estimated Payment
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Loan amount
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Down payment
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Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
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Mortgage insurance
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HOA dues
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Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
