File review and submit – Your Mortgage Consultant will review the information you have provided to determine they have a completed file, and will then submit your loan application in a timely manner to the Operations Center for underwriting. The more complete the file, the faster the application will go through the system and be underwritten. Also, an underwriter is likely to ask for fewer conditions if the file is complete.
Appraisal time – Once your file reaches the Operations Center, your appraisal is ordered. As appraisals have become increasing regulated, they are taking longer. They now must be ordered in a random fashion or use an appraisal management company. Nationally it takes an average of 7-10 days for an appraisal to be completed.
The credit report used for mortgage loans is a tri-merge report with information from three credit bureaus: Equifax, Experian and TransUnion. Each of these is unique to the mortgage lending process and provides slightly different information.
A lender will pull your full credit report, as well as your credit score – a number between 300 and 850 (with most scores 650-800, the higher the better) that represents your credit worthiness. Your credit score will be the middle (not average) score from the three reporting bureaus. If you are applying for a mortgage with a co-borrower, the lower of the two middle scores will be used to determine eligibility and rate.
A good first step to buying a home is to get pre-qualified. Your mortgage consultant can help you with this, which involves completing an application and pulling your credit report to determine how you handle your finances. This will determine your “middle score,” provide an indicator of your credit risk, and give you a good idea of what loan programs and rates you may be eligible for.