This “10 Steps to Your Home” List outlines the approval steps for a typical home loan.
1. Apply for your mortgage loan – there are three options to submit your application:
- 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. Your Credit Report is pulled - 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. Receive Important Documents - Within three days of submitting your 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 in-person. 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. Submit 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. We start 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.
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.
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.
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 bringing 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!