1. Premier Borrower Process
Before you begin a search for a new home, you
should be pre-qualified. This process helps determine what you can afford. You
can submit your pre-qualification certificate with the purchase contract to the
seller which enhances the offer and makes you more attractive to the seller.
2. Loan Application
Once all parties have agreed to the purchase price
and terms have been signed, there is an executed contract, which becomes the
foundation of the new mortgage. Within three general business days after
application you will receive a Loan Estimate, which explains the costs and
risks of the mortgage. There are now three steps which need to be completed in
order to proceed with the loan.
Decide on
a loan program.
Gather all
personal documentation.
Sign all
necessary loan documents.
3. Locking an Interest Rate
You may choose to lock your rate at the time of
application or may choose to float your loan to be locked at a later time.
Knowing the closing date on the purchase contract helps us to determine the best
time to lock the rate. Rates fluctuate every day. It may be good idea to secure
your rate as soon as you can to avoid a surprise increase if the market rises.
4. The Approval Process
There are three major steps that are accomplished
between your application signing and closing your loan with Wintrust Mortgage.
Appraisal - An
appraisal is an opinion of the property’s value and is necessary to close your
loan. Wintrust Mortgage will order an appraisal on the property to be sure that
you are paying fair market value.
Title
and Escrow - Real estate attorneys will generally order
these services and then forward the findings to Wintrust Mortgage for the
closing package.
Underwriting - Each
loan will be sent to an underwriter who reviews the application, supporting
documentation, financial information, sales contract, appraisal and title to
ensure all necessary criteria and regulations are met.
5. Closing
Three days before closing you will receive a
Closing Disclosure, which explains the costs of the transaction. The charges
incorporate the lender’s, attorney’s, realtor’s and title fees as well as taxes
and insurance escrows. On the closing day, all final closing documents will be
signed with a title company. Your first mortgage payment usually will not start
until the second first of the month past the closing date.