What is the lending process?
The lending process is a setup over a couple of different steps and let's just start with pre-approval and that's where you sit down and get your loan pre-approved. The next part of that would be going out and finding a house with your real estate agent.
Once you find a house, you are going to submit a contract to the seller. They are either going to approve it or they are going to send it back to you with some changes. That's the negotiations part of buying a house and once those negotiations have been completed and everything has been signed off on, then you have what we call a Ratified Contract.
Once you have a Ratified Contract, a couple of things happen. An appraisal is going to be ordered. Again to make sure that there is a house there and that you are paying the proper value, proper amount for the house. We are going to order title work and that's going to go to the courthouse and review the title on that property for 60 years.
Once all of that is done, it gets sent to the lender and your loan is underwritten. Once it's underwritten, the underwriter may or may not approve your loan and if they don't approve it, it's most likely with conditions. A condition is just something that the lender wants more clarification on before they can issue approval.
Once you get loan approval then you are going to go to settlement. In that settlement, it's going to be you and your agent. The seller and the seller's agent, if there are agents involved and the settlement company. You are going to sign again three main documents. You are going to sign your Settlement Statement or your HUD-1, your NOD and your Deed. That's the mortgage process.
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