Getting approved for a mortgage does not have to be a long and drawn out process. When Security Savings Bank provides your home financing, the loan process is completed quickly and without hassle.
Below is a step-by-step guide to help you understand the process and so you know what to expect.
Step 1 – The first step is to submit a Residential Mortgage Loan Application.
There are several ways you can submit an application, depending on which is most convenient for you:
- visit one of our branches and speak directly with a Mortgage Loan Officer;
- mail your application;
- fax your application; or
- submit your application online.
No matter how you choose to submit your application, you can feel confident knowing that you will work with an experienced Security Savings Bank lender throughout the entire loan process.
During this initial step you will be asked to provide us with a check to cover the cost of ordering your credit report and your appraisal. It is also necessary to provide documentation in order to get your loan approved.
When your application is received, your file is assigned to a Mortgage Loan Officer. Your loan officer will then work with our loan support group as a team to gather all the supporting documentation required before your loan is reviewed for an approval. You may hear this step referred to as "processing" your loan application. A copy of your credit report will be ordered as well as verifying employment, assets, liabilities, etc.
During the processing stage, your loan application will be submitted to an automated underwriting application such as Fannie Mae's Desktop Underwriter or Freddie Mac's Loan Prospector. The use of these software applications has become an industry standard. The review of your loan is much more standardized and quicker due to use of this software. The amount of paperwork required to get a loan approval has been reduced, making the process more efficient.
An appraisal of your property is ordered during processing. This step is necessary to determine the value of the home you are purchasing or refinancing. The appraisal is completed by an independent fee appraiser that is approved by Security Savings Bank. The appraiser will contact you for access to the property soon after the actual appraisal is ordered.
Within three business days of submitting your application to us, we will provide you with a Good Faith Estimate of Closing Costs and a Truth in Lending Disclosure. These important documents help you review the estimated costs you may incur with your pending loan transaction. Be sure to review these carefully and ask your loan officer about anything that does not make sense.
Step 2 – This next phase, underwriting, occurs once all necessary documentation has been received.
During the underwriting process, the file is reviewed to make sure it meets the guidelines of the specific loan program for which you are applying.
Underwriting reviews:
- Credit – how you've paid your debts in the past;
- Capacity – your actual ability to repay the loan based on your income and other debts you are paying; and
- Collateral – the value of the property you are buying or refinancing and are pledging as “collateral” for the loan.
While we try to obtain all required documentation prior to the file going to underwriting, additional documentation may be required during the process. In underwriting, your loan will be approved, denied, or suspended for further information.
Do not panic if your loan is denied or suspended for further information. Talk with your Mortgage Loan Officer about the specific reasons your loan was not approved. Further information may be provided to gain an approval or a plan of action may be put into place to work through the underwriting issues.
Step 3 - If the loan is approved, you are ready to move to the final stages of the process, called closing. Your loan officer works with our closing department to ensure the closing of your loan goes smoothly. Security Savings Bank works with the closing attorney to prepare the documents required to close the loan. To close the loan, you actually go to the closing attorney’s office. Closing is simply signing all the necessary legal papers to formally complete the loan transaction and for the loan proceeds to be disbursed.
Closing culminates the loan process. Shortly after closing, you will receive information about the schedule of your monthly mortgage payment. It is wise to go ahead and make your first payment at the time it is due regardless of whether you have received information about your billing. During the closing process, you will receive a “First Payment” letter that lists the correct payment and the address where your payment should be sent.