We at Ingram company strive to find the best opportunities to meet our client’s financial goals, and we believe it is important to educate all potential buyers on their mortgage process and loan options. Whether you are a making a new home purchase or refinancing your current mortgage, our experienced team will walk you through every step to aid your understanding and simplify the process. 

Loan Process Timeline

Purchase

Refinance

Step 1: Application

Your first step is to submit an application to get Pre-Approved. This is important because it means that the lender has checked your credit and approved your documentation. You will be given a pre-approval letter to use while submitting an offer. We can tailor the letter to the exact property and offer specifications.

 

Once you have an agreed upon contract, we will require the purchase contract, escrow information and title information

Your first step is to fill out an application or update your application if you we already have your information from previous loans. We will assist you in gathering the necessary information or documents. 

Step 2: Processing

You have now submitted your application with all of the required documents and information and will be given a loan estimate to look over. Once you have given intent to proceed your loan will be originated by our brokers, and the corresponding paperwork will be sent to the loan processor to ensure your file is prepped and ready to be sent along to the bank or mortgage lender.

You have now submitted your application with all of the required documents and information and will be given a loan estimate to look over. Once you have given intent to proceed your loan will be originated by our brokers, and the corresponding paperwork will be sent to the loan processor to ensure your file is prepped and ready to be sent along to the bank or mortgage lender.

Step 3: Underwriting

After the processor has compiled your information and finalized your file, it is sent to the underwriter to verify its integrity and deem it as an acceptable loan. The goal is to receive LOAN APPROVAL! 

The underwriter’s stamp of approval is necessary to close your loan. 

After the processor has compiled your information and finalized your file, it is sent to the underwriter to verify its integrity and deem it as an acceptable loan. The goal is to receive LOAN APPROVAL! 

The underwriter’s stamp of approval is necessary to close your loan. 

Step 4: Closing

Before closing you will be given a closing disclosure and a three-day window to review it and ask any final questions. Your final step is to sign the loan documents and close your new loan!   CONGRATULATIONS!

Before closing you will be given a closing disclosure and a three-day window to review it and ask any final questions. Your final step is to sign the loan documents and close your new loan!   CONGRATULATIONS!

Frequently Asked Questions

When considering a new loan, one of the biggest factors for most people is the immediate cost to them.  Costs include a) third party closing costs b) points or lender credit and c) prepaid items of interest, taxes and insurance. Our experienced brokers work to minimize these costs as much as possible depending on your situation.

Fees

A) Third party fees consist of underwriting, escrow charges, title insurance charges, recording, messenger and various misc. charges depending on your situation. In total, these are approximately $3000. If an appraisal is required, the total charges are approximately $3500.

B) Points or lender credit. To obtain a lower rate, you will pay points.  If you take a slightly higher rate, you will receive a lender credit to help pay or offset other charges.

     -“1 point” corresponds to a cost of 1% of the total loan amount. For a loan amount of $400,000, this would translate to a                $4,000 fee. Or conversely, a 1% lender credit would result in a credit to you of ($4,000). The actual price paid for a                      mortgage rate varies on a sliding scale from “cost” to “rebate.”

C) Prepaid interest - Mortgage interest is paid in arrears. Therefore, your March 1 payment is covering interest for February, for example. That means for a refinance or purchase, interest is payable for the month the loan closes. Therefore, there is always interest due. 

Property taxes – Depending on the month the loan closes, property taxes may be due. Property taxes are paid twice per year, each payment covering 6 months.  Payments are due in and February and November every year. 

Homeowners Insurance – Your insurance premium is due once per year.

An impound account is held by the lender of your loan to facilitate and ease the burden of your tax and insurance payments. With this you will pay a 1/12 of your annual property taxes and homeowner’s insurance each month with your mortgage payment. Impound accounts are generally required for borrowers with low down payments, however they can be beneficial and you may elect to open an account even if it is not required. While this increases your monthly payment, it also removes the burden of having to write some hefty checks a few times a year. When you acquire a loan and open an impound account the lender will take extra cash and add it to your account as a cushion for upcoming months. This must be considered as well for it may increase your initial cost. 

The Escrow Impound Account

Documents and Paperwork

Gathering the required information for your loan application can be a process itself so we have created a checklist of the basic paperwork you can expect to need.  Other paperwork may be required depending on your situation as well as the loan program and type of loan

  • Most recent federal tax return, and possibly the last two tax returns. Include all schedules of the return.

  • W-2 forms from the previous two years, if you collect a paycheck

  • Profit and loss statements or 1099 forms, if you own a business, plus 3 months business tax returns.

  • Pay stubs covering the most recent 30-day period

  • Bank account statements covering the most recent 60-day period

  • Homeowners insurance declarations pages

  • most recent mortgage statements for all real estate owned (if applicable)

“Do’s” include keeping a paper trail of any large deposits into your bank, remembering that your credit will be checked at the end of the process to ensure no new debt has been incurred, maintaining your current employment and understanding that we will work with you to find the best possible loan for your specific situation.

 

Please “Don’t” open any new credit or close any open lines of credit, make any new major purchases or pay off all debt(for this may impact your qualifications), make any major untraceable deposits to your asset accounts, increase existing loan amounts or change jobs. 

Best Practices

 "Do's" & "Dont's" 

Conventional Loans 

FHA Loans

VA Loans

Jumbo Loans

Loan Options

  • Lower your interest rate & monthly payment

  • Shorten your term & lower the overall interest paid

  • Cash-out for home improvements or pay off high interest debt

  • Eliminate mortgage insurance

  • Get out of an adjustable rate mortgage (ARM) or short-term loan

Reasons to Refinance

Whether you are making a first-time purchase or refinancing, you will need to fill out a loan application online, over the phone or in person at our office. For first time buyers this will include getting pre-approved. 

This link/address will bring you to the application page:

https://markingram.floify.com/apply

Where to Start?

Typically, borrowers who cannot make a 20% down payment or do not have 20% equity in their home if refinancing will be required to purchase mortgage insurance due to their higher risk of defaulting. If you are required to purchase mortgage insurance the cost will vary depending on your loan and financial situation. MI can be paid as a separate fee or built into the rate on what is called LPMI or (Lender Paid Mortgage Insurance). We will work with you to obtain the best solution.

Mortgage Insurance

​Depending on your home’s value and type of loan, you may need a home appraisal in order to determine the value of your home and ensure it as adequate collateral for your loan. Our brokers will speak with you about qualifying for an appraisal waiver to bypass this step.

Home Appraisal

On average, your mortgage process should take about 30 days from application to closing. This may vary depending on your loan program and type. The total time will also depend on how low rates are! If it is a period extremely low rates and a period of a “refi boom”, turn times could be extended to 60 days.

How Long is the Mortgage Process?

Mortgage rates fluctuate as a result of changing demand for mortgage backed securities and the yield on the 10-year treasury. A mortgage backed security is a pool of mortgages packaged together by mortgage lenders and sold to investors or government agencies such as Fannie Mae or Freddie Mac. These pools then become securitized, similar to a bond, which investors pay to buy and in turn receive a yield over time. A high demand for MBS raises their selling price and the yield drops, putting downward pressure on interest rates. The government issued 10-year treasury is also a main driver in mortgage rates. A lower 10-year yield will result in lower mortgage rates. 

For more detailed information on the correlation between yield, MBS and mortgage rates refer to the following website: http://www.mortgagenewsdaily.com/

When and Why Do Mortgage Rates Move?