If you’re in the middle of getting a mortgage, it is sometimes hard to know what to expect to happen and when. While every lender does things a little bit differently, here’s about how things will go when you get a mortgage from Guild.
1. Pre-Approval (Before You Shop)
First things first—you should get pre-approved for a loan before you even start looking at houses. This can be done days or even months before you actually find a home you want to buy. During this initial step, you’ll be providing us with lots of paperwork about your income, taxes, debt, and assets.
After we’ve issued you a pre-approval letter, you’ll start looking for a home to buy. (And you’ll know exactly what you can afford, which is a big reason to get pre-approved first!)
2. Preliminary Review
Once you have an accepted offer on a home, we’ll start our preliminary review of your paperwork. If it hasn’t been very long since your pre-approval, we probably won’t need much documentation from you.
But if it’s a while since we issued your pre-approval, we’re going to need more paperwork from you because everything you gave us earlier will be outdated. Expect us to ask for updated pay stubs and bank statements.
An important note about gift funds: we don’t require the gift funds to actually be in your account at this time, but we do need a letter from the person giving you the money (the letter basically says that the money is a gift that does not need to be paid back).
Behind the scenes, we’ll be working on assembling your loan file, as well as working on the title report and setting up your escrow account. We’ll also order your appraisal, because this currently takes about six weeks, which means that we need to get started on it right away.
3. Initial Disclosures
At this point, we’ll give you initial loan disclosures, which are required by the federal government. These documents tell you how much you’ll pay in closing costs, how money you’ll be putting down, and what your interest rate and APR are, amongst other important numbers.
These numbers may change a little before you receive your closing disclosure papers, but, in most cases, they should not change much.
You must receive this paperwork at least seven business days before closing, but that shouldn’t ever be a problem.
Your file now goes to underwriting for initial loan approval. After that’s given, there are usually some conditions to close, which we will start working on right away. We may need additional paperwork from you at this point. We’ll gather everything and send it to the underwriter so that you’ll be cleared to close.
This is also when we’ll need you to decide who you’d like to use to insure your new home and to go ahead and apply for insurance.
5. Closing Disclosures
You have to receive closing disclosures at least three business days before you close, according to federal law.
In most cases, the numbers on your closing disclosures should be very similar to the numbers on the initial disclosures you received at the beginning on the mortgage process. If they’re not, we’re happy to answer any questions you have about the changes.
It’s also during this time that we’ll receive your appraisal back and give you a copy of it. We give you three days to review it before you close, though you can waive this right if you’d like.
6. Closing the Loan
That’s it! It’s time to close. Since Oregon is an escrow state, all the documents have to be signed the day before funding, which is done through the escrow company. Escrow will arrange for the buyer and seller to sign.
Throughout the Process
We’ll be sending you weekly loan updates throughout the loan. We don’t ever want you to be wondering what the status of your loan application is.
The most important thing you can do is to communicate with us! If you leave your job, if you have a salary change, if you want to buy a car (don’t!), make sure to let us know.
If you have any questions at all or don’t know what to do, please get in touch with us. We can often avoid problems or delays in closing if we have full information in advance.