The Home Loan Process Works in Florida
Here’s an overview of the mortgage loan process in Florida and the key steps involved in securing a home loan. A crucial step is the credit review and employment verification, which happens after you submit your application. This step requires documents such as tax returns, W-2s, pay stubs, and bank statements.
The mortgage application collects details about you, the property, and your financial situation. Your mortgage lender will review this information along with your credit history before moving you forward in the loan process.
Throughout the process, we’ll gather the necessary documents for the underwriters, who may request additional information as needed.
Home Lending Simplified:
APPLICATION
There are two types of mortgage application forms: the “short form” and the “long form.” The short form, available on the website, gathers the basic information needed to pull your credit and initiate the loan process quickly. The long form is a more comprehensive application that requires detailed information about you, the property you wish to purchase, and your personal finances.
During the application process, you will be assigned a loan officer who will guide you through each step. Your loan officer will compile your application documents, select the appropriate paperwork for the loan program you’ve chosen, and prepare your loan package for processing. Once ready, your file will be sent to a Processor.
The Processor verifies key details such as your income, employment, and assets, often requiring phone verifications and additional documentation from your employer. After all required information is confirmed, the file is sent to the Underwriter for final review. Depending on market conditions and the responsiveness of involved parties, such as your employer, pre-approval is typically issued within 24-48 hours of verifying the documentation. In many cases, same-day approval is possible.
PROCESSING
Once we have compiled your application and the documents needed, selected the proper paperwork for the loan program you requested, and have prepared your loan package for processing, the Processor will take over much of the work on your file.
The Processor will verify key details such as your income, employment, and assets before forwarding your file to the Underwriter. This process often involves phone verifications and may require obtaining documentation from your employer. If applicable, a payoff will be requested from your current mortgage holder(s), and a Title Search will be conducted to ensure all liens are identified and verified. Once all required information has been confirmed, your file will be submitted to the Underwriter for approval.
Documents needed at application:
- Most Current Paystub (30 Days)
- Two Months of Current Bank Statements
- Copy of Driver’s License
- Two Years Recent Tax Returns (All Pages)
- Most Recent Quarterly Statement for Retirement/Investment funds
APPRAISAL
UNDERWRITING
The Underwriter holds the final authority in approving your home loan. Before your file reaches the Underwriter, we typically secure a conditional approval through an automated underwriting system. The Underwriter, a “live person,” will then manually review and verify your income, credit, cash reserves, and the property to ensure everything aligns with the program’s guidelines.
If all requirements are met, the Underwriter will issue a conditional approval outlining any remaining items needed for the lender to fund your loan. It’s crucial to provide thorough and accurate documentation to present a strong financial profile, as the Underwriter’s decision carries significant responsibility. If additional information is requested during this stage, it is essential to supply it promptly to keep the process on track.
LOCK YOUR RATE
Mortgage loan rates may change daily. To ensure that you receive the rate you were quoted, you may elect to lock in your rate by paying an up-front authorization fee. Your loan officer will educate you on the locking of the rate and provide all available options and loan programs.
ESCROW AND TITLE
A title company will hold the money and documents until all conditions are satisfied. Title work will be prepared, including a title exam to ensure the title to the property is clear. Other title documents such as the mortgage note and deed will be prepared.
CLOSING & SIGNING
The costs associated with processing and closing a mortgage loan, such as application fees, points, title, insurance, and credit processing. A closing agent will prepare and send loan closing documents package to the closing company and wires loan funds to the closing agent. When budgeting for your new home purchase, be sure to factor in closing costs (this cost will be provided to you in our free good faith estimate).
The documents will be sent to a title company for you and the seller to sign. Funds such as any remaining down payment and closing costs will be due at this time. Mortgage closing costs normally include such items as appraisal fees, title exam, settlement fees, title insurance, credit report fees, and application fees.
FUNDING & TITLE TRANSFER
When all funds are collected and the contract has been verified, the title is transferred and the purchase price funds are disbursed to the seller. After this step, you can take over the keys to your new home – congratulations!
