Even the most experienced homebuyer can find the home mortgage process hard to understand. By working hand-in-hand with everyone who is responsible for the building process, your Mortgage Loan Consultant is kept current; and goes farther to make sure you understand everything you need to know about this important transaction.

Want to start right now? Here's a step-by-step explanation of the home mortgage process that most lenders follow. You can also check out our Homebuyer's Quiz, Frequently Asked Questions and the Mortgage Glossary. Please remember that while there is a lot of information here, your TMHF Mortgage Loan Consultant will make it easy for you.

Step 1: Pre-Qualification Before the actual home loan process begins, we gather information about your income and debts and figure out how much you can afford to borrow. There are many different programs available, which can result in different pre-qualification loan amounts. We'll help you pick the ones that best fit your situation. We will also order a credit report and run your home loan through an automated underwriting system.

Step 2: Loan Application Once you're pre-qualified we will prepare a formal loan application, verify employment, income, bank deposits, and gather any other documents needed for processing. This process may be done face to face with your Mortgage Loan Consultant or via mail.

Step 3: Processing We review your credit reports and verify your debts and payment histories. If there are late payments, collections for judgments or other concerns, we get a written explanation from you, which may clear up any of these types of issues. We order the appraisal and review for value. Title insurance and homeowner's insurance is ordered. A complete package is put together for final approval.

Step 4: Underwriting Underwriting is where we make sure your home loan package meets all lender requirements. At this point we have usually gathered all the information we need. In some instances, however, we may require additional information and will contact you quickly to make sure approval happens on time.

Mortgage Insurance Underwriting If your down payment is less than 20%, all lenders require Private Mortgage Insurance (PMI) to insure the loan in case of default. PMI is typically paid monthly but can sometimes be financed in with your loan or paid upfront at closing. After a few years, you may be able to eliminate PMI if your home goes up in value resulting in 20% equity (see "Equity" in our Mortgage Glossary). Your servicing lender will require a new property appraisal and can help you when the time comes.

Step 5: Closing Your home loan has been approved, the package completed and a closing date and time are scheduled. Construction of your home is complete. The closing typically takes place at the closing attorney's office, or the title or escrow company.