It can be tough to understand the process of buying a home in San Mateo County. Even if you’ve bought before, it was likely years ago and the rules have all changed. So, we’ve decided to break down the steps to getting a loan and buying a home in San Mateo County. Here it goes…
Step 1: The Initial Meeting
The initial meeting is where we discuss your financial situation and the various available loan programs. Once we have a better idea of your financial circumstances and your short and long term financial goals, we can help recommend some lenders and loan programs. We’ll also give you a Good Faith Estimate, which will give you an estimate of the costs involved in closing a loan.
Step 2: Documentation Collection and Application Completed
Items needed include but are not limited to two years of tax returns, pay stubs and bank statements. For a more detailed list, check out my blog previous post, What Should I Bring to My First Appointment?
Step 3: Credit Report is Ordered
We’ll run a detailed credit report for you and any co-borrowers. You’ll be given a copy of the report to review for any discrepancies.
Step 4: Obtain Missing or Additional Documentation
Our processor will audit your file to make sure all of the i’s are dotted and the t’s are crossed. Our processor will alert you if additional documentation or explanation letters are needed.
Step 5: Pre-Approval Issued
Once the necessary documentation is gathered and reviewed by the underwriter, a genuine pre-approval letter is issued. This is your ticket to ride. Most sellers in San Mateo County will ask for your pre-approval letter before they will even consider your offer.
We tailor a new letter for each offer our clients make so as to not to undermine their bargaining position. If you can afford $500,000 and you are making an offer on a house for $450,000, we don’t want you to give the seller the pre-approval for $500,000. We’ll make sure you and your San Mateo County Realtor® have a pre-approval letter that is specifically tailored for each purchase offer.
Step 6: You Find a Home and Your Realtor® Presents an Offer on Your Behalf
We’ll meet with you to discuss a loan structure for this particular home including how much you’ll put down, a closing cost estimate and loan program. Once the offer is accepted, a closing date will be set. Now it is time for you to do your due diligence and for us to get to work processing your loan documents.
Step 7: Appraisal and Title Report is Ordered
The appraiser will arrange to go out to the home and make an independent assessment of what he/she thinks the home is worth in today’s market. The appraisal is a risk analysis for the lender to ensure they have enough collateral to protect their investment.
Step 8: Loan File Completed and Submitted to Underwriter
We submit a complete package to the underwriter for final loan approval. Although the underwriter may have reviewed your file at the initial pre-approval, the underwriter will review the complete loan package to make sure there have been no major financial changes that have affected your credit worthiness. Sometimes the underwriter will ask for some last minute documentation like updated bank statements or paystubs. He or she will also review the appraisal and make sure the property is in satisfactory condition.
Step 9: Final Loan Approval
Once the package is approved by the underwriter, he or she will issue what we call a final loan approval.
Step 10: Loan Documents are Drawn
Closing documents are sent to the title company. We make an appointment to sign the loan documents about one week before we are scheduled to close escrow. You’ll get an estimated settlement statement that details the costs to close the loan. The costs should be the same costs that we went over during our initial meeting.
Step 11: Loan is Cleared to Fund
After you sign your loan documents and review the estimated settlement statement, you will then wire the funds required to close the loan (down payment and closing costs). Once your funds are received by the escrow company and all conditions are cleared by the lender, the lender will then issue the funds for your loan amount. Funding of your loan usually takes place the day before you are scheduled to close.
Step 12: You Become the Owner!
Congratulations! You are now the owner of your new home.
Step 13: We Stay in Touch
We’ll put all of your loan information into our loan analysis software, which we call our Mortgage Adoption Center which will keep you apprised of shifting market conditions. We’ll alert you when there is an opportunity to save money on your mortgage.
Want to Know How Much You Can Afford?
Give us a call, send us an email, or fill out our secure online loan application and we’ll tell you how much you can afford. Like to sit down and speak with us first? No problem. Call us at (650 520-0915 or email at info[@]sanmateomortgageblog.com and we can schedule a no obligation consultation.
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