The Mortgage Process

The-Morgage-Process

 

Buying or refinancing a home is about you and your home, not the mortgage. We’ve streamlined the process to make it as simple as possible, starting with our online application. Once you take care of the financing, you can focus on what really matters—your home!

STEP 1 – Determine the type of loan you need

We have several tools to help you learn more about the different types of loans. Explore our interactive learning modules, browse our mortgage pages, or read our Home Loan Options article. If you’d like more personalized assistance, speak with an experienced Mortgage Consultant.

At minimum, you’ll want to take into consideration the following items:

  • Your monthly income
  • How much you owe on all your loans
  • How much you want to spend on your new house, or if you’re refinancing, how much you still owe
  • How much you have available for a down payment
  • How long you’re planning to stay in your new home
  • How much flexibility you have with your monthly payments

A Stanford FCU Mortgage Consultant will be able to answer all of your questions and guide you to the best loan for your unique needs!

STEP 2 – Apply for your loan

Our online application will guide you through every step, and help you determine and upload the types of documents we’ll need to initially review your loan request and complete your loan. Before you get started, here is the basic information we’ll need:

  • Borrower Information – The basics about you
  • Property Information – The basics about the property you want to finance (if known)
  • Income – How much you earn (gross income if you’re salaried or a 2-year average of reported income if you’re self-employed and/or receive variable income from other sources)
  • Assets – The assets you wish to be considered for your loan request and plan to use for the down payment, closing costs, and any remaining reserve funds
  • Liabilities – We’ll run a credit report to confirm your debts and fill in that section of the application for you (you’ll have a chance to review and make any corrections)
  • Declarations – We’ll ask some miscellaneous questions to complete your application

STEP 3 – Review your application and loan request with a Mortgage Consultant

Your Mortgage Consultant will review your application information and request documents to verify your income, assets, and any other additional documents needed. If you are interested in buying a new home, your Mortgage Consultant will submit your loan request to an Underwriter for loan pre-approval. This is a true loan commitment, compared to a pre-qualification that’s typically offered by other lenders. Your pre-approval letter will give you greater buying power and assure the seller that your income and assets have been reviewed and verified.

STEP 4 – Processing your loan

Your new home, or existing home if you are refinancing, will be evaluated by ordering an appraisal, title report, and flood certification. We will also be in contact with the escrow/title company and send you the appropriate disclosures so you have a chance to thoroughly read and understand the costs associated with your loan.

You will receive email updates as your loan moves through the loan process, and you can contact your Mortgage Consultant any time with questions!

STEP 5 – Underwriter review

Underwriting is the process of evaluating a loan application to determine the risk involved for the lender. It involves an analysis of the borrower’s ability and willingness to repay the debt, and the value of the property.

STEP 6 – Closing your loan

Once you receive final loan approval, we will prepare the loan documents for your signature and send them to an escrow/title company for signing. After we receive the signed documents, we’ll transfer the money to the escrow company and they will disburse the funds to all the appropriate parties and record the documents. Your loan is now complete!


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