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What to expect during the application and funding process

Category: mortgage-fundamentals
What to expect during the application and funding process

Applying for a mortgage can be a complicated process with many steps. With your dedicated loan team at Homepoint, you will know what to expect at every stage. Below we’ve outline the 7-steps to closing on your next mortgage loan.

1. The application

Has it been awhile since your last mortgage transaction? When you make an appointment to speak with a member of your loan team, they’ll ask about your goals and why you’re looking for a home loan –are you trying to reduce your monthly payment, consolidate debt, or move to a larger home? This will help them guide you toward the right type of loan for you.

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Start your application

While completing your application, we’ll gather details about the assets and accounts you’ll use for your down payment and closing costs. To make it easier, you can securely link your accounts within your application to import this information automatically. If you link your accounts, you may not need to upload statements later.

After you apply, before you lock your loan, you will be provided a loan estimate which helps you understand the risks and cost of the mortgage before you commit to moving forward with your application.

Have questions? You can complete your application with the assistance of your loan officer by calling us at (844) 543-1567.

2. Loan Estimate

You will be provided a loan estimate which helps you understand the risks and cost of the mortgage before you commit to moving forward with your application.

3. Locking your rate

The first step in the process of financing a home, or refinancing is called a “rate lock.” A rate lock on a mortgage loan means that the interest rate won't change between the offer and closing, if closed within the specified time frame, and there are no changes to the application. The offer of a rate lock means that you have met certain prerequisites in the loan process — usually an initial review of income, asset and credit history.

4. Underwriting

After a rate has been locked, the loan will be submitted to our underwriting team. Our underwriters will review all the details and tie up any loose ends in the application like uploading specific documents. They may require additional documents, and we’ll be in touch if do. Submitting these documents helps us verify the information you provided in your application. We may request follow-up items during the review process. Responding as soon as possible will help keep your home loan application moving forward.

5. Conditional Approval

The next step after underwriting, would be conditional approval. This means that the underwriter may still need a few more documents before a loan is fully approved. At this point in the process, we would send a list of any items we need via email.

6. Cleared to Close

What happens when you receive final approval? Congratulations! It’s time to celebrate; your loan is clear to close -meaning your underwriter has signed-off on all documents and issued a final approval. A member of your loan team will reach out to schedule your closing and review the final closing disclosure.

7. Closing

The “closing” is the last step in financing or refinancing a home. At the closing, you and all the other parties in a mortgage loan transaction sign the necessary documents. After signing these documents, you become responsible for the mortgage loan. At this time, you will:

  • Review and sign all your loan documents. If something is different from what you expected or agreed to, don’t sign until you resolve the issue.
  • Provide documentation of homeowner's insurance and inspections (if applicable).
  • Give a certified or cashier’s check to cover the down payment (if applicable), closing costs, prepaid interest, taxes and insurance. You could also send these funds in advance via wire transfer.
  • Depending on your loan terms, you may also be required to set up an escrow (or impound) account to cover property taxes and homeowner's insurance, in addition to your monthly mortgage payment.

What next?

Read about what to expect after you have closed on your loan here.




Ready to apply?

Talking about your options with a member of your dedicated loan team can help you make the best decision for your situation. Homepoint homeowners can start the conversation by calling us at (833) 773-6489.