The Mortgage Process: a step-by-step guide.
Most people have no idea what happens to their loan application once it leaves their hands. But it’s important you make sense of the big picture and see how the pieces fit in the process. So Sterling National Bank has created a six-step mortgage application process that helps you to better understand. From pre-qualification or pre-approval, to closing on the loan, the guide will answer all of your questions - and then some. The following is our 6-Step Guide.
The Sterling National Bank 6-Step Mortgage Loan Process
1. Pre-Qualification—Before applying for your mortgage loan, you’ll want to stop by or call your Sterling National Bank Home Mortgage Expert to find out how much of a mortgage you can afford. Based on a preliminary analysis of your income and assets, we’ll discuss the best options that fit your needs. At this stage we may be able to provide you with a free Pre-Qualification Certificate.
2. Application—After reviewing your financing alternatives and considering all the options, your Sterling National Bank Home Mortgage Expert will recommend the best loan program for you. Together you’ll complete the loan application and once all the documents are signed, we’ll obtain and review your credit report. You’ll also have the chance to lock in an interest rate at this time.
Within three business days after submitting your application, you’ll get several documents including the Loan Estimate, which contains important information about your loan and further explains the process and charges involved.
3. Locking-In Your Interest Rate—You have the flexibility to “lock” in your interest rate any time during the loan process - or up to 10 days prior to your closing date. If you decide not to lock in an interest rate when completing your application, simply tell us when you’re ready. It’s your choice.
4. Processing—Our loan processors will organize the required information into your loan file, and verify the accuracy of information provided on your application, including:
- Ordering an appraisal of the home you’re buying or refinancing to determine if the property is adequate collateral to secure the loan
- Contacting your employer to verify your place and length of employment
- Reviewing your deposit accounts, income, assets and outstanding debts
- Keeping you informed throughout the entire loan process
5. Underwriting—Next, your application goes to a local Sterling National Bank Underwriter for a final decision. During this stage all information in your file will be reviewed including assets, liabilities, income, credit history and appraisal. The intent is to determine if your application meets the guidelines of the mortgage program you’ve selected. If an approval decision is made, you’ll receive a commitment in the mail and it may have conditions. You must sign and mail it back by the date indicated.
For verification purposes, there are additional documents you’ll have to provide before you can close on your loan. For example, you may be requested to provide satisfactory title insurance, proof of flood (if applicable) or hazard insurance or additional information on your payment history. Your Sterling National Bank Loan Processor will be there every step to help you gather this information.
6. Closing—After all the information is gathered and our commitment conditions are satisfied, a closing date will be set. At closing, you’ll sign all the final documents and pay all necessary fees. Ownership of the property is then transferred to you. Congratulations, you’re now a proud homeowner!
How can you help?
There are several things you can do to help move the process along:
- Provide all the information requested as soon as possible
- Sign and return all documents by specified dates indicated on the Application Checklist
- Bring pay stubs for the last 30 days, two months of bank statements and W-2 forms for the past two years – documents needed to complete your application. If a borrower is self-employed, two years personal tax returns and business tax returns if applicable.
- If you haven’t already done so, call your Sterling National Bank Home Mortgage Expert when you decide to lock in your interest rate
Buying a Home or Refinancing?
From your mortgage application to closing and beyond, Sterling National Bank is with you – every step of the way. Our Home Mortgage Experts are ready to help you pick the perfect mortgage program from a variety of affordable options and take the time to explain every detail.
It's easy to get started! Simply complete our Quick Contact form or call 1-800-537-4888 to arrange for a free consultation, whenever and wherever it is convenient for you. One of our Home Mortgage Experts will be happy to work with you. Find your neighborhood financial center.