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A step-by-step walkthrough of purchase loans

The loan process to purchase a home has many steps. The walkthrough below provides an overview of that process. We'd be more than happy to answer any questions you may have along the way.

Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much payment you can afford. Completing this step will also increase your negotiating power! 

Loan Search - Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.

Loan Application - It's crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts, as well as assets and income should be included.

Documentation - Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years' tax returns and account statements verifying the source of the down payment, funds to close and reserves.

The Hunt - Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.

Appraisal - Lenders require an appraisal on all home purchases. By knowing the true value of the home, the borrower is protected from overpaying.

Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.

Termite Inspection - While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.

Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.

Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.

Mortgage Insurance - Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.

Approval, Denial or Counter Offer - In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.

Insurance - Lenders require fire and hazard insurance (often referred to as Homeowners Insurance) on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.

Signing - During this step, final loan and escrow documents are signed.

Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.

Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.

Closing - Documents transferring title will now be officially recorded by the County Recorder.

About

Established in 1980 in Chatham, New Jersey to offer real estate-related financial assistance to customers, Mortgage Access Corp. has grown by leaps and bounds. Currently serving home buyers and sellers in 36 states, Mortgage Access Corp. leads the way in full service under one roof, supplying mortgage loans and encompassing both insurance and several title insurance companies. By seeking out and contracting with Fannie Mae (the Federal National Mortgage Association), Freddie Mac (the Federal Ho ...

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Contact Me

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Jacob L. Grodanz - NMLS: 12086
Licensed: PA: #23876
2313 Burlington-Mount Holly Road
Burlington, New Jersey 08016
Phone: (609) 386-0066
Email: jgrodanz@moacc.com

 
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Mortgage Access Corp. - NMLS # 2731 (www.nmlsconsumeraccess.org). Executive Offices: 225 Littleton Road, Morris Plains, NJ 07950. Main: 1-800-829-CASH. Equal Housing Lender. All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Licensed in 37 states. CA (Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 4130435), CO (Regulated by the Division of Real Estate), GA (Georgia Residential Mortgage Licensee, License #15719), IL (Illinois Residential Mortgage Licensee # MB.0006377), KS (Kansas Licensed Mortgage Company- MC.0001229), MA (Massachusetts Mortgage Lender and Broker Licenses #MC2731), ME (Licensed as a Supervised Lender), MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law, MS (Licensed by the MS Dept. of Banking and Consumer Finance, NJ(Licensed by the N.J. Department of Banking and Insurance), NY (Licensed Mortgage Banker - NYS Department of Financial Services), OH (Registration #MBMB.850209.000 & SM.501248.000), OR (OR Mortgage Lending License #ML-2528), PA (Licensed as a 1st Mortgage Banker by the Dept. of Banking), RI (Rhode Island Licensed Lender and Loan Broker), WA (WA: Consumer Loan License CL-2731) Mortgage Access Corp. arranges loans with third-party providers. Refinancing to reduce total monthly payments may lengthen repayment term or increase total interest expense. For more licensing info, visit www.mortgageaccess.com/aboutus/licensing. This site is not authorized by the New York State Department of Financial Service. No mortgage applications for properties located in the State of New York will be accepted through this site.