This “10 Steps to Home” guide outlines the approval steps for a typical home loan.
This short read can help you understand the information needed for a smooth and error-free home loan process.
Your Loan Process:
1: Apply for your mortgage loan
- Apply online at mortgagefirstfed.com
- In-person appointment – make an appointment with a mortgage loan officer
- Telephone application – call 208-733-4222 and ask to speak with a mortgage loan officer
2: Credit Report
Once we receive your full loan application, your loan officer will pull your credit report. After your credit report is reviewed, your loan officer will go over your options with you.
3: Important Documents
Within three days of application, you will receive your first set of disclosures including, but not limited to:
- your application,
- your right to receive a copy of an appraisal,
- your credit score disclosure notice, and,
- your borrower certification and authorization.
You may receive these disclosures through electronic delivery, mail, or
If you included the property address in your application, you will receive a Loan Estimate which explains closings costs and other important loan terms. At this time, the loan officer will go over your payments, down payment, and all other information about your loan.
4: Qualification Documentation
Your loan officer will send you a list of items needed to begin your pre-underwriting review process. This list will be tailored to you and your situation. See Loan Verification Documentation (on page 6) for more information.
5: Pre-Underwriting Review
After you provide all the materials required for the loan process, there will be a pre-underwriting review to determine the approval status of your loan. Once initially approved, your loan will be submitted to a mortgage loan processor to begin preparing the file to meet the conditions required. The loan officer may be in contact with you if more information is needed.
You may choose to lock the interest rate on your home loan anytime between steps 3 through 7. Locking the interest rate requires an accepted Purchase and Sales Agreement.
6: Ordering Appraisal, Title Insurance, and Other Verifications
After both you and the seller agree on the Purchase and Sales Agreement, First Federal will order an appraisal on your new home. All other verification processes are completed by the mortgage loan processor associated with your loan file.
7: Final Underwriting
When all final conditions are met, and we complete the appraisal, your loan officer will submit your loan file for final underwriting approval. You will be contacted by your loan officer if any additional items are needed.
8: Closing Disclosure
You will receive a Closing Disclosure. This document gives you the cost breakdown of your loan. The Closing Disclosure also lets you know the approximate cash needed to close. This Closing Disclosure requires your signature three (3) days before closing.
9: Closing Day
You go to the title company and sign your loan documents. Your loan officer will let you know the necessary final funds to close before closing day. If you are bring any funds, they must be certified funds or certified checks. Cash and personal checks will not be accepted.
10: Loan Funding
If you sign your loan documents before 4:00 PM, your loan will typically fund the same day.
Enjoy your new home!
Loan Verification Documentation
We may require the following items to complete your loan approval. You may provide these documents voluntarily at any time.
- U.S. Government or State Issued Photo Identification
- Other verification of identification
Source of Income
- Most recent 30 days of pay-stubs
- Past two years W2s
- Two years tax returns and all K-1s (self-employed borrowers)
- Social Security Award Letter (retired borrowers)
- Pension Statements (retired borrowers)
- Documentation for other sources of income
- Two months’ bank statements– all pages
- Two months’ investment/retirement account statements– all pages
- Current mortgage statements for all properties owned
- Proof of property taxes and insurance premiums (if not on mortgage statement or if owned free and clear)
- Divorce decree, if applicable
- Child support owed, if applicable – court orders and any modifications
- Bankruptcy documentation and discharge papers, if applicable
Tips for a smooth home loan.
DO respond promptly to your loan officer.
It is important that you respond promptly for any additional requests for information or documents. Waiting too long could cause a delay, which could create a problem with the home you want to buy.
DON’T mess with your credit during the loan process.
During the loan process, make sure to pay all your bills on time, don’t apply for new credit cards, and don’t take out any new car loans. A change on your credit report - before your loan closes - could put you in a position where you may end up losing your dream home.
DO keep using your credit as usual.
It’s best to keep your spending and bank accounts healthy. You can use your credit cards, but don’t consolidate your debt onto one or two credit cards or make any large purchases.
Also, don’t transfer bank balances from one account to another, or change bank accounts. If you do need to make a purchase that may affect your credit, mention it to your loan officer right away
*Rate contains a variable rate feature. Annual Percentage Rate and terms available upon approved credit. If qualifications are not met, a higher rate may apply.