Mortgage Process

Getting approved for a mortgage does not have to be a long and drawn out process. When Charter Mortgage LLC provides your home financing, the loan process is completed quickly and without hassle.

You can count on us to provide high quality personalized service throughout each step of the process.

To help you better understand the mortgage loan process, we've listed below some of the steps that are a part of your loan approval.

Step 1 - The Application

A mortgage application is somewhat more detailed than those used for other types of loans, such as an automobile loan. The Residential Mortgage Loan Application can be completed by visiting or calling one of our branch offices, or you may complete the application online through our secure website. If a Realtor or friend refers you to a specific loan officer, be sure to ask for that person. Otherwise, any of our experienced loan officer staff will be pleased to get you started.

For your application, you'll need to provide information about yourself and any co-borrower that may be applying with you. Generally, we will ask for information about your employment, income, assets, and current debt. Your loan officer will provide you with a list of specific documentation needed to process your loan, but here is a list of some of the most commonly requested items:

  • W-2s for the most recent 2 year period
  • Paystubs to cover the most recent 30 day period
  • Bank statements for the most recent 2 months
  • If self-employed, tax returns for the last 2 years

During the application process, the loan officer will provide you with a Good Faith Estimate of closing costs. This is a list of typical expenses that are associated with your loan. It is very important that you realize that this is an estimate only.

Step 2 - Processing and Underwriting

Simply put, loan processing is what takes place to verify the information in your application and prepare your loan file for underwriting. Technology allows for a more streamlined process than what was common just a few years ago. Charter Mortgage LLC, uses an automated underwriting system to simplify and speed the process. These automated systems are connected to the primary investors of home mortgage loans, Fannie Mae and Freddie Mac. The process of entering your information and obtaining the automated feedback is called "scoring". Based on the information provided, the system will either give us an automated approval or refer the loan back for additional information or manual underwriting. This feedback also tells us exactly what documentation is necessary to complete your file. It is during this process that your credit will be reviewed to determine how you've paid your debts in the past and what your ability is to repay the loan you are requesting based on available income and current debt.

Another step in processing is having an appraisal of your property done by an independent appraiser. This is to make sure the amount you are paying or refinancing is supported by the market value of the home. The appraiser is selected by the mortgage company from a list of approved appraisers in the area and is not employed by Charter Mortgage LLC.

Also, a title search is done to make sure there are no outstanding liens on the property or any other issues that would cloud your ownership of the property or the mortgage companys ability to establish a clear first priority on the property.

With all of this documentation in place, the underwriting process can be completed. An underwriter is someone who reviews the file to make sure all documentation is present and acceptable to the investors. Sometime it is necessary for your loan officer to contact you for additional information to clarify questions the underwriter may have. We try to anticipate these questions and ask for everything in advance, but sometimes there are additional questions or issues that we must address.

Step 3 - Closing

Once you have a loan approval, you are ready for the final stages of the process. Closing involves signing the necessary legal documents to finalize your loan. To close the loan, Charter Mortgage can send a closing agent to you home for document signing or you may chose to go to the attorneys office. The closing agent will also collect from you any money that is to be your down payment and any remaining closing costs that you may owe. If this is a purchase, then the transaction is completed on the day of closing. If this is a refinance of your primary home, the law requires a three (3) day waiting period, called a right of rescission, before the funds may be disbursed.