Loan Programs

Mortgage Closing Process – What To Expect

While the homebuying process can vary from state to state, there are a few key steps you'll typically go through when applying for a mortgage.

• Pre-Approval

  If you’re trying to save money, have some credit issues, or want to put down as little as possible, conventional loans are a solid choice. They’re flexible and come with low monthly payments. Plus, there’s no penalty for paying off your loan early if you want. Conventional loans also have more lenient credit requirements, so even if your credit isn’t great, you might still qualify. Whether you’re buying your first home or refinancing, California conventional loans could be a good option. Just remember, if you put down less than 20%, you’ll need to deal with Private Mortgage Insurance (PMI).

• Points

  You might have to pay points to lower your interest rate. Points are a percentage of your loan amount that you pay upfront. It’s an extra fee, but paying points can save you money over time with a lower interest rate. Talk to a mortgage advisor to see if this option makes sense for you.

• Loan Application

  When you apply for a mortgage, you’ll need to fill out a form with your personal details and info about the property you’re buying. You’ll also need to submit documents about your finances. The lender will review everything and check your credit.

• Locking in a Rate

  Mortgage rates change all the time, so if you want the rate you were quoted, make sure to lock it in.

• Appraisal

  The property will be appraised to determine its value. An appraiser will visit the home and compare it to similar properties in the area.

• Down Payment

  Most lenders want at least 20% down. If you’re putting down less, you’ll probably have to get private mortgage insurance (PMI), which protects the lender if you can’t make your payments. PMI will be included in your monthly payment.

• Loan Review Process

  After the appraisal, your mortgage loan file will be submitted to the lender for review and evaluation.

• Title preparation

  The title company will hold onto all the documents and funds until all the approval conditions are met. They’ll prepare the title, including a title exam, to ensure that the property’s title is clear.

• Signing

  Once all the documents are ready, they’ll be sent to the title company for both the buyer and seller to sign. This is also when the remaining closing costs and any other funds are due. Typical closing costs include fees for the title exam, appraisal, title insurance, settlement, application, and credit report.

• Title Transfer

  Once all the funds are in escrow and all conditions are met, the loan will be funded, the deed of trust will be recorded, and the title will be transferred. The seller will receive the purchase price, and you’ll be ready to grab your keys and move into your new home!