The Loan Process

This section will explain the mortgage loan process as it relates to the purchase of a new home.

1. To begin, you will discuss with your mortgage broker the particulars of your financial picture as it relates to the type of home you have in mind. These questions will help the broker determine the loan program to which you are best suited. Your broker will then ask you a series of financial questions to help determine the amount of mortgage loan for which you can reasonably hope to qualify. The result is called the Pre-qualification - a figure that will give you an approximate price range in which to shop.
   
   
2. You will then fill out the mortgage loan application, and sign the required disclosures provided by your mortgage broker. Your broker will be glad to answer questions regarding the loan application to ensure accuracy and completeness.
   
   
3. Your application form will then be submitted to our mortgage loan underwriters for final review and a determination will be made as to the maximum loan amount you will qualify for, based on income, credit scores, debt, and various other factors. It is important to understand that the underwriter is the final authority for determining loan qualification status. When your qualification is approved, the maximum loan amount may be more or less than the pre-qualification figure quoted you as the process for its determination is a great deal more elaborate in nature. The time frame for getting this figure, called the pre-approval, is somewhere on the order of two to seven days, depending on the specific type of loan program you applied under.
   
   
4. It may be necessary for your mortgage broker or loan processor to contact you during this time to verify and / or clarify information, or to collect additional documentation as directed by the underwriter.
   
   
5. Once underwriting has approved your loan application, you may begin searching for your home in earnest. An essential idea to keep in mind during this time is that any change to your debt / income ratio prior to closing your home mortgage can adversely affect your qualification amount, or jeopardize your approval status altogether. Substantial new purchases (furniture, vehicles, etc.) should be delayed until after closing to ensure your continuing qualification.
   
   
6. When you have found the home you wish to purchase (or builder you choose to construct your home) the pre-approval will be put in letter form and given to you or your realtor to substantiate your offer presentation. Once your offer is accepted, FIT Mortgage will arrange to have an appraisal completed on your home, order the appropriate title work, hazard insurance binder, and schedule a closing to conclude the process. All of these items can normally be accomplished within three weeks of the acceptance of your purchase offer.

Thus concludes a succinct description of a process that will greatly enrich your personal and financial life - one that is certain to bring you pride and enjoyment for years to come - that of home ownership.

We at FIT Mortgage understand the importance of this endeavor, and resolve to quide your safely and expeditiously toward that purpose.