The NWM Blog
Written by Northwest Mortgage
Published on Fri, May 29, 2020, Last Updated on Sun, Nov 1, 2020
If you are a first-time buyer, searching for the perfect home to raise a family, we are happy to help you navigate the mortgage process. We have your best interests at heart and want your homebuying journey to be a smooth one.
Step 1: Get Your Pre-Approval Letter
You’ll need to get apre-approval letter, which states the amount of money the lender is willing to let you borrow based on your present-day financial situation. Knowing the amount of money they can use to buy a home helps buyers look for homes within their range.
You’ll need to provide the following documents to the lender to get your pre-approval letter:
- 2 Years of W-2s or tax returns if you work for yourself
- Your latest pay stub with your income listed from year to date
- Your latest statements from one of your bank accounts
- Your latest statements from one of your investment accounts
Step 2: Submit Your Mortgage Application
You found your dream home, made an offer, and the seller accepted your offer. Now, you need to submit a mortgage application to get approval for a loan. Your lender will help you fill out the mortgage application correctly and will include the following:
- Information about your new home
- Your loan program
- Your financial history
With your mortgage application submitted, your lender will give you these documents:
- Loan Estimate– It contains key details about the loan you’re trying to secure, an estimated monthly payment and interest rate, and a summary of all the expenses relating to applying for the mortgage loan (recording fees and loan origination fees).
- Conditional Commitment Letter– It’s the first offer made by the lender on the amount of loan they’re willing to give you. The letter also contains certain conditions that you need to meet before closing (giving proof of a home insurance policy and performing an acceptable appraisal).
Step 3: Help With the Loan Processing
You’ll work with a loan processor to collect all documents you need to get your loan approved. Next, you need to hand in the written proof, stating that you’ve met every condition in it. The conditions in the loan will vary from person to person. You’ll need to submit the following documents:
- Tax returns
- Pay stubs
- Your latest statements from your bank accounts
- Proof of other insurance policies
Step 4: The Underwriting Process
Once you’ve submitted your application, the lender will transfer your application to the underwriter. The underwriter will review every document to ensure every detail is correct and that you’ve handed all the required proof to meet the conditions laid out in your mortgage application.
The underwriter is responsible for approving or denying your loan. If accepted, you’ll get another mortgage application, but this time with no restrictions. This final document will serve as proof of your mortgage loan. Lastly, you’ll get a closing disclosure, which includes all the details that are important to your mortgage loan. This includes your interest rate, monthly payment, and closing costs.
Step 5: Closing
The lender will transfer the funds to you to buy the home. You’ll give a check, covering the rest of your closing costs and down payment. Once you’ve signed all the documents, the seller will hand the keys over to you.
Northwest Mortgage helps first-time homebuyers secure a mortgage loan. Use ourmortgage calculatorto estimate the monthly mortgage payments you need to make and then call us to help you get a mortgage pre-approval.