Six Steps to NJ Mortgage Lending

For most of us who are not involved in the NJ mortgage lending process on a daily basis – the order of events can seem like a mystery. The following article will help to give a brief description of the process associated with NJ mortgage lending.

Step 1: Getting Prepared for the NJ Mortgage Lending Process

It is highly advisable that you get all of the essential documents you’ll need ready for the NJ mortgage lending process beforehand. Things such as W2’s, paystubs, phone numbers for your human resources contact and insurance agent, and property tax bill. In addition, have some form of documentation of the assets that you own, as well as statements from your 401K or stock investments, the values of your car, boat or other recreational vehicles. These items will help make the balance sheet look more attractive than just owning a house as an asset.

Step 2: The Application for the NJ Mortgage Lending Process

This is the step in the NJ mortgage lending process when you will meet with your mortgage professional and sign all of the essential paperwork that will verify all of the information that you will be submitting to the bank. In the past, this was always done in person, but technology has made it such that these documents can now be downloaded and printed out or simply sent to you via mail. The preliminary questions can be answered on the phone and the NJ mortgage lending application filled out in advance.

Step 3: NJ Mortgage Lending Processing

This is the step in the NJ mortgage lending process in which the mortgage professional reviews the application to make sure it accurately portrays your unique financial situation. Don’t be surprised if you get a phone call during this step requesting additional information. This is not a warning sign, but usually just the act of requiring a few more specifics to make the processing proceed smoother.

Step 4: NJ Mortgage Lending Underwriting

This is the step in the NJ mortgage lending process in which the underwriter looks at all of the variables associated with your loan to make sure that everything makes sense. Ultimately, the underwriter will make the decision as to whether or not your application is approved.

Step 5: NJ Mortgage Lending and “Clearing Conditions”

This is where most delays occur in the NJ mortgage lending process. Often, the underwriter requests additional information to help facilitate a decision. You will often then be told that there are “conditions to clear” and therefore requires more information. Such items often requested are verifications of employment, statements from your bank and proof of where certain funds came from.

Step 6: NJ Mortgage Lending Closing

All things being received satisfactorily by the underwriter, this should be the least stressful time of the NJ mortgage lending process. You are ready to sign those all important, numerous papers that will place you in your dream house. It is important to review the papers you are being asked to sign and bring the Good Faith Estimate that you received to compare and make sure that all the costs that were presented up front still match up.