What to expect during the application and funding process at Homepoint
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 seven steps to closing on your next mortgage loan.
1. The application
Has it been a while 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? These questions will help guide you toward the right type of loan for you.
While completing your application, our team will 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.
Have questions? You can complete your application with the assistance of your loan officer by calling us at (844) 543-1567.
2. Loan estimate
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.
3. Locking your rate
The first step in the process of financing or refinancing a home 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 if 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.
After your 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. Submitting these documents helps us verify the information you provided in your application. We may request follow-up items or additional documents 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 is conditional approval. At this stage, your underwriter has signed off on the general parameters of your loan, but may still need a few more documents before a loan is fully approved. At this point in the process, we send a list of any items we need via email.
6. Cleared to close
What happens when you receive final approval? Congratulations! 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.
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.
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.