getting your mortgage
APPLICATION PROCESS (CONT.) UNDERWRITING Once the processor has compiled a complete loan file (i.e., the application and all supporting docu- ments), the underwriter reviews the application in detail to make the final decision to approve or deny your mortgage loan. This includes reviewing your employment history, credit history, and the apprais- al report. The underwriter also ensures your mort- gage meets current loan product guidelines. If the underwriter requests further documentation, you will be required to provide it before going forward. This happens often, so don’t be alarmed if you’re asked to provide additional documentation. LOAN COMMITMENT/APPROVAL If the underwriter approves your application, you’ll receive what’s called a loan commitment letter, which confirms your approval for the loan. This document outlines the details of your loan, includ- ing the amount being borrowed, the interest rate, and the term or repayment period. Once you’ve received your loan commitment, the next step in the process is closing on your home.
WHAT NOT TO DO DURING THE LOAN PROCESS Once you’re cleared to close, you may want to go out and celebrate by buying new furniture or appliances, but doing so could jeopar- dize your loan approval. Here are some steps you should avoid taking until you’ve closed on your home.
Don’t apply for credit (such as a new credit card, car loan, or financing for furniture or appliances) Don’t make major purchases Don’t liquidate funds Don’t make large deposits Don’t switch jobs
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All of these factors could impact your final closing, even if you’ve already been approved.
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