THE MORTGAGE PROCESS

INTRODUCTION

The mortgage process is not what it used to be just a decade ago.  At that  time you went to visit the lender personally, whether it was your local bank, a lending institution, a local resident with money to lend or a friend of a friend.

Since that time the federal government has set up a formal secondary mortgage market via Fannie Mae (and other organizations).  This means that your mortgage will probably be sold to another at some time.  Even if your lender has no intention to sell the loan at this time, he will still require the complete Fannie Mae documents "just in case".

There are many variations on types of loans, each with its associated documentation (or lack of) and costs (interst rates, closing fees,etc), since there are many different categories of borrowers and lenders.  Borrowers include people who want to refinance or purchase real estate. Lenders include banks, pension plans, Wall Street securities, private investors, the previous home owner, etc.  There are even "service companies" who make loans and immediately resell all of them, but retain the computer processing/billing/payment function for a fee charged to the new lender.

It is noted that the present mortgage rates are low compared to the past and this is an indication that there are many lenders competing to get your loan.  In this climate, if the home buyer really wants to buy and the seller really wants to sell, then a lender can usually be found to make the transaction happen.

Click "NEXT" to the first step, pre-qualification, and then continue through the mortgage process.You can click "BACK TO THE MORTGAGE PROCESS" to review the steps in the Mortgage Process.

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