We'll tell you where to start until you reach closing day.
After viewing several options, only one property caught your eye. It has everything you dreamed of! Your choice is made — that house will become your home.
Now what? The first step: applying for a purchase mortgage. And where to start? Below, we share five steps to help you navigate the process.
- Fill out a loan application
During this phase, the mortgage consultant will guide you through the mortgage application process and up to the closing. They will assist you find the right mortgage loan for you.
To apply, you must provide documentation that will be used to evaluate your credit and your ability to repay the mortgage loan. After completing the application, the consultant will provide a loan estimate, which includes information related to closing costs, as well as your duties and responsibilities as a customer.
During the application process, you should avoid transactions that could compromise your credit. "We recommend not applying for or obtaining new credit obligations during the process. The mortgage consultant made their analysis and worked on your pre-qualification based on information about your current debts," explained Maritere Vélez, Marketing and Corporate Business Liaison at
Popular Mortgage.
- Request documents from suppliers
Not only will the banking institution analyze your financial ability, but it will also examine the property you have selected. To do this, the mortgage consultant will require documentation and services needed from several suppliers, such as appraisers and land surveyors.
- Application review
During this step, the institution will assign a mortgage specialist and a loan analyst to evaluate documentation regarding you and the property. These officials will evaluate the origin of the initial payment, whether you have the income and savings required, your credit report, the property deed, among other elements.
- Credit evaluation
A credit officer will receive your application and examine your financial ability to repay the mortgage loan. Likewise, the officer will ensure compliance with state and federal regulatory agencies, as well as the credit requirements of the stakeholders, such as FHA and Fannie Mae, among others.
After evaluating the information, the credit officer may approve your mortgage loan and determine the offer, as well as the terms and conditions for the application approval.
It is important to know that the time frame for evaluating the application could vary, depending on when the required documentation is provided.
- Get ready to close
By following these steps, you have achieved the most important thing: getting approved for a mortgage. Now comes the time to close on the loan. The bank officer will provide you with a Closing Disclosure within three days of closing. This document includes the transaction fees, your monthly payments, a breakdown of your closing costs, as well as your rights and responsibilities as a debtor.
A closing analyst will contact you to discuss the document and answer any questions you may have before closing day. Now, all you have left to do is to sign the mortgage contract and start enjoying your new house and future home.
The Popular Mortgage team will guide and prepares you to fulfill your dream of buying a home. You will be able to start your mortgage application process the way you prefer: online, by telephone or at the mortgage centers. For more information, go to www.popular.com/en/mortgages, call 787-707-7070, or visit any of our mortgage centers located around the island. One of our representatives will gladly assist you.
