This is the first entry in an ongoing series on mortgage basics. On my mortgage website, I cover a host of topics on my frequently asked questions page. Since this is the most popular page on my site, I thought it might be a nice way to blog. You can find the entire list of FAQs here: Arizona Mortgage Pro FAQs. I will continue this series covering one topic per post.

How does the mortgage process work?

Every mortgage process will be a little different because each person or couple has a unique financial situation and schedule. However, almost all loans follow the same timeline of events.

1. The Application: In order to begin the loan process, you must first fill out an application. There are three simple and easy methods you can choose from to complete this portion of the loan process; an online application, a face-to-face interview, or a phone interview. You will likely know most of the information contained in the application off the top of your head, but some things you may have to find in your paperwork. The completed application must then be signed and returned.

2. Documentation: Following up the application with the specific documents your lender asks for is also a crucial part of getting your loan closed quickly and efficiently. For a list of common documents required for a new home loan, please read my FAQ regarding this topic.

3. The Appraisal: The next step in the process would be to order and schedule the home appraisal. Appraisers are very willing to work with each individual's schedule and the appraisal requires little of a potential borrower's time or effort. This step is very important to obtain financing in a timely manner. The title work is also ordered for you by your mortgage professional during this step.

4. Loan Approval: My loan officer assistant and I will package up your paperwork and submit it to the underwriter. The underwriter is the person who approves, suspends, or denies the home loan. Nearly all loans submitted are approved because a reputable mortgage professional should not submit a loan that he/she doesn't believe will be approved. There are two types of loan approvals, conditional and final. Conditional approval means that the underwriter requires a few more items to fully approve the loan. Final Approval (known as "clear to close") means that you are ready for the next step.

5. The Signing: This is the final step in the process. It is time to schedule the signing of the final paperwork, which includes the new note and mortgage. Up until this point in the process, nothing you have signed is a binding lien on your house. For purchase loans, this is the final step and you should receive the keys to your new house within 24 hours or so. For refinance loans, this will begin the three day right of rescission period, in which you will have three days to look over the documents. After this three day period, the loan will be completed or "funded."

That is the basic flow of every loan. At Movement, we do things a little differently because most lenders would add a step or two by having a processor work on the loan in between steps 2 and 4 and requesting further documentation. Being a veteran of the mortgage business, we won't need this extra step as I will already have requested the items I feel are required for a full approval.

Please feel free to contact me with any questions you may have regards the loan process. I am readily available by phone or email or visit my site to chat with me in real time.

Thanks for reading my blog!

John Moran

Senior Loan Officer

3920 S Rural Rd #110 Tempe, AZ 85282

Direct: 480-300-4520

Fax: 602-904-7741

Website: www.azmortgagepro.com

NMLS#1059293 AZ#LO-0924433