The Process Is a Lot Less Intimidating When You Know What Is Happening

You submitted your mortgage application. Now what? Most buyers spend the weeks between application and closing wondering what is happening with their file and whether everything is on track. Moses Alford wants to pull back the curtain because the process is significantly less intimidating when you understand what is happening at each stage rather than waiting in the dark for updates that may or may not come.

Step One: File Review and Organization

The first thing that happens after your application is submitted is a complete review of your income, assets, credit, and all the documentation you have provided. Everything gets organized and verified to make sure the file is complete and ready to move into underwriting. This is the stage where any gaps in documentation get identified early rather than surfacing later in the process when the timeline pressure is higher.

Step Two: Underwriting

Your file then moves to underwriting. The underwriter reviews everything in the file against the guidelines for your specific loan program and typically comes back with conditions. Conditions are not a red flag. They are the underwriter's way of saying the file looks good and they just need a few additional items to finalize the approval. A letter of explanation for a large deposit. Updated bank statements. Verification of employment. These are normal and expected parts of the process rather than signals that something has gone wrong.

Step Three: Appraisal

Simultaneously the appraisal is ordered and completed to confirm that the home's value supports the purchase price and the loan amount. The appraisal is an independent assessment by a licensed appraiser and its outcome affects the final loan approval. In most cases appraisals come back at or above the purchase price and the process moves forward without disruption.

Step Four: Clear to Close

Once the conditions from underwriting are satisfied and the appraisal is confirmed the words everyone is waiting for arrive. Clear to close. That is the signal that the loan is fully approved and the closing can be scheduled. Documents are prepared and sent to the closing table for signing.

Step Five: Signing and Funding

You sign. The loan gets funded. Someone hands you the keys to your new home.

The Part That Should Never Be Missing

As Moses Alford explains you should never have to wonder what is happening with your loan. That wondering is the anxiety that makes the mortgage process feel more stressful than it needs to be and it is entirely preventable with consistent communication.

Moses Alford and his team keep clients updated throughout every stage of the process so buyers always know where their file is, what is happening next, and what if anything is needed from them to keep things moving.

Mortgages do not have to be complicated. You just need someone who knows how to guide you through one. Reach out to Moses Alford to start the conversation.

Sources

ConsumerFinancialProtectionBureau.gov
FannieMae.com
MortgageNewsDaily.com
Investopedia.com
HUD.gov