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The Home Buying Process: Operations

Apr 14, 2021
You’ve submitted your loan application, now what? What’s happening from now until you reach the closing table? The mortgage process involves many different people working together to run smoothly. From your lender’s operations team to multiple third parties, there is a lot of behind-the-scenes work to get you into your dream home.

Behind The Scenes

It’s imperative that you know once we submit your loan application it does not go into a black hole. Instead, an entire team is working together to get you cleared to close as soon as possible. While each member of this team is responsible for different jobs, in reality, many of them are happening at the same time. Each team member is working together to expedite the process and ensure your loan reaches the status of “clear to close”.

 

As soon as your application is submitted, a team of openers are ordering all of the services needed to complete the file. This includes, but is definitely not limited to, title insurance, verification of employment, and an appraisal. All of these services provide information to the processors and underwriters that answer one main question; “Can we approve this loan and feel comfortable that the borrower will make their payments on time for a property that is fairly valued?”


Processing & Underwriting

As the loan is being opened, our processors are reviewing all of the documentation you sent to your loan officer as part of the application process. You have submitted your bank statements, paystubs, W’2s, and possibly more. A processor’s job is to go through each of those documents carefully and verify the information included in the loan application. If they notice anything in the documentation that is not clearly explained or accounted for in the loan application, they will come back to you and ask for additional documentation. If you’re asked for supplemental documentation it does not mean anything more than your processor wanting to make sure they have everything needed to get your loan fully approved. The processor’s job is to ensure that the underwriter will have as few questions as possible when reviewing your application and can see a clear picture of your financial story.


Once the processors have everything they need they will submit your loan to underwriting. The underwriters will review the entire mortgage package against the product guidelines and make sure everything is met and issue your approval. If they have any questions they will issue what is called “conditions.” These are simply things they need information on or documentation for before they fully approve the mortgage.

 

After they review the entire mortgage package they will send the mortgage back to the processors and they will supply all of the information needed to satisfy the conditions or answer the questions that the underwriters have. Once all the conditions have been met and questions have been answered, your loan will be resubmitted to the underwriter for final approval.


Closing

While a team of processors and underwriters are working to get your loan approved, a closing team is hard at work getting all of the information needed to issue a final closing disclosure. This includes all third-party fees, title insurance, and speaking with your homeowner’s insurance company to provide you with a complete document that includes all of the information needed for closing, including your monthly payments and all closing costs. This will not be the first time you see your closing costs. You receive an initial closing disclosure from your loan officer early in the process that will have an estimate of your closing costs so you are well prepared for what you need for closing. 

 

While there is so much that is happening behind the scenes, the most important thing to remember is an entire team is working together for you. Throughout this entire process, you should be receiving consistent and clear communications from your loan officer about where your loan is at in the process and expectations for when you will get to call your new house your home.


This part of the mortgage process is the most confusing, but knowledge is power. Having an understanding of your personal loan process will help you feel a sense of control and give you a little peace of mind. Working with a trusted team of professionals will get you from application to closing in the most stress-free way possible.


For more information about the home buying process and how to start, contact one of our loan officers today or visit our products page to see what financing solutions Fairway has for you!



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Q1 Recap

By Mikaylah Collins • 12 Apr, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • 10 Feb, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • 15 Dec, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
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