Texas Mortgage Process
How the Home Loan Process Works in Texas
Here’s how the Texas mortgage loan process works for all loan types. A key step is credit review and employment verification, done after submitting the application, requiring documents like tax returns, W2s, pay stubs, and bank statements.
The mortgage application form requests details about you, the property, and your financial documents. Your mortgage lender will examine this information as well as your credit history, and you are then ready to move down the pipeline of the mortgage loan process.
We’ll collect documents from you for the underwriters, who may request additional ones during the process.
Let’s Simplify the Home Mortgage Lending Process:
Application
Processing
Appraisal
Underwriting
The Underwriter is responsible for final loan approval. Before this, we obtain a conditional approval through an automated system. The underwriter then verifies your income, credit, cash reserves, and the property. If everything meets program guidelines, a conditional approval is issued, listing the remaining items needed to close the loan. It’s crucial that the underwriter has all necessary documentation, as their decision is critical. If additional info is requested, it’s essential to provide it promptly.
Lock Your Rate
Mortgage loan rates in Texas may change daily. To ensure that you receive the rate you were quoted, you may elect to lock in your rate by paying an up-front authorization fee. Your loan officer will educate you on the locking of the rate and provide all available options and loan programs.
Escrow and Title
A title company will hold the money and documents until all conditions are satisfied. Title work will be prepared, including a title exam to ensure the title to the property is clear. Other title documents such as the mortgage note and deed will be prepared.
Closing & Signing
Mortgage loans come with costs like application fees, points, title, insurance, and credit processing. A closing agent will send the documents and wire funds to the closing company. Be sure to budget for closing costs, which will be provided in a free estimate.
At the title company, you’ll sign documents, and remaining down payment and closing costs are due. Typical costs include appraisal fees, title exam, settlement fees, and application fees.
Funding & Title Transfer
When all funds are collected and the contract has been verified, the title is transferred and the purchase price funds are disbursed to the seller. After this step, you can take over the keys to your new home—congratulations!
