Orion’s brokers know that sometimes clients need their hands held during a purchase transaction. They may be a little overwhelmed at the idea of applying for a mortgage, and there are a lot of moving parts which is exactly how a broker adds value: Coaching a client through what is involved in obtaining financing. Let’s walk through telling a client what’s involved in getting a mortgage, step by step.

Become prequalified, when the broker and Orion take a look at basic financial information (such as income, debt, assets, etc.) and calculates how large of a mortgage loan your client may qualify for. It strengthens any offer your client may make by showing evidence they have the financial ability to follow through on an offer.

Clients will make an offer to the sellers with details including the proposed purchase price, sale conditions, and timing. It is a potential buyer’s way of putting their best foot forward. And then after an offer is accepted, your client will complete (and submit) a mortgage loan application. The client will need top rovide a range of documents that verify income and assets, such as pay stubs,tax returns, and bank statements to the broker.

After the application is submitted by your client, a review will be done of the documentation and details around finances, such as any recent large deposits in accounts and the ability to repay the loan. Remind a client that if any negative items pop up in documents or credit history, such as gaps in employment, late payments or overdrafts, they may need to sign a letter that explains what happened.

Within three days of the application, the client will receive an initial disclosure packet detailing the estimated amount of the loan, interest rate, monthly payment, and total closing costs, as well as what kind of taxes and insurance will be needed, and how the interest rate and monthly payments may change in the future. Orion may or may not have approved the mortgage at this point. If the client wants to move ahead with the loan application, they’ll sign an Intent to Proceed, and the lender will request additional financial information.

An appraisal by an independent third party will take place to ensure that the property is worth enough to cover the loan amount if your client defaults. Orion will again review employment, credit and other financial information, and the appraisal, before making a decision on whether to approve the application. Brokers will remind clients to not lease or buy a new car, open a new credit card, take out a loan, or spend a lot of money on credit cards buying furniture.

The client will review their final closing disclosure, an initial loan estimate at thetime of application, and then an updated closing disclosure to help further understand the terms and fees prior to committing to the mortgage and signing. Clients have three days (not including Sundays) to review this closing disclosure, compare it with the initial Loan Estimate, ask questions, and make sure all the fees and terms of the loan are understood prior to signing the final loan documents and paying “cash to close” which are all the remaining costs andfees of the new mortgage.

Once done, the mortgage loan will be funded and the transaction will close, the sale will be recorded, and your client will receive the keys to their new home!

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