I’ll be honest; the entire process of purchasing a home is not fun.  Having your teeth pulled by a dentist may be more comfortable than getting a mortgage approval these days.  When I am asked about my system, I make it clear the more that is accomplished early on will make for a smoother closing.   The system from the beginning to the end is time intensive.  I will walk through some of these steps:

1. You hire a “team,” meaning the right players helping make the outcome a positive one.  First, you hire a lender and see how much you can get approved for.  Then you hire a real estate agent to help you find a dream home.  This is just the beginning.  By the time the process is done you have hired many others including an appraiser, home inspector, termite guy and title company.

2. Get a plan (with your lender and agent).  In my experience, I have found that having a plan upfront will make the last days of closing run smoother.  Preparing early helps reduce stress levels on all parties involved with the transaction.

3.  Get a pre-approved loan.  This process can range from a couple hours to days and weeks depending on your specific challenges.  If a real estate agent tells you he can have a pre-approval by a lender in minutes, that is not the case in this market.  A pre-approval in my book is determined when;

• I have a complete and fully reviewed mortgage application on file.
• An automated approval process has been run and come back approved.
• I have received all supporting documentation to meet loan guidelines.

Once I have all of this done, your loan is fully pre-approved and I can issue a pre-approval letter or loan status report.  I can then inform your real estate agent that he or she can take you house hunting in your pre-approved range.

4.  Start house hunting.  This process could take hours, days, weeks or months depending on your specific needs, wants and requirements.  Once the real estate agent has an ACCEPTED CONTRACT is when the clock starts ticking.

5.  Signed contract.  This means that the accepted contract is signed by all parties involved in the transaction.  All parties include the buyer, seller and agents.  If you have a verbal acceptance but it will take three additional weeks to receive from the bank, this doesn’t count!  Your final approved loan starts with a FULLY ACCEPTED CONTRACT.

6.  Process, underwrite and close your loan.  Right now my turn times for these steps is in 30 days or less on FHA, VA or conventional financing.  Sometimes we can speed up that process, but be prepared for it to take that long.

Knowing and understanding the process of a mortgage approval can prepare you for your own experience.  It doesn’t have to be as painful as a visit to the dentist, all it takes is a little (or a lot) of patience.  Good luck!

Gary Miljour- Mortgage Lending for Tempe Arizona

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Gary Miljour Licensed Loan Originator NMLS#207208