As you start thinking about buying a home, you'll also need to consider the home financing process. Although it may seem a little intimidating at first, understanding the loan process now will help you proceed more confidently along the path to homeownership.

We strongly recommend becoming pre-approved prior to beginning to shop for a home. It will help you establish your price range and let you know the loan amount and monthly payments you can expect. If you haven't already been pre-approved, the basic mortgage process has five simple steps:

1. Processing

Whether applying for a loan online or offline, you will start by answering some questions on a loan application. Your answers, your credit, and the loan program you select will help us determine what additional documents, if any, you will need to provide.

2. Credit Decision

If you received instant approval at application, you were given a conditional credit approval letter. If another processing option was determined to be best, your file is reviewed by an underwriter, who makes a decision based on your loan application. Our underwriters are trained credit risk analysts who will do everything possible to help you receive loan approval.

Soon after your application is approved, you'll receive a written commitment letter from the lender that explains the terms of your loan, including any loan conditions that need to be met before or at closing. Read your commitment letter carefully, and be sure to follow the instructions to ensure a speedy closing.

In the case that your application is not approved, Link Home Mortgage can help you determine what actions need to be taken to obtain home financing.

3. Pre-Closing

• Prior to closing, your home mortgage processor will ask you to provide:
• A copy of your homeowner's or "hazard" insurance policy and one year paid receipt
• A copy of the flood insurance policy and paid receipt if the property is in a flood zone.
• Evidence that you have satisfied all outstanding loan conditions listed in your commitment letter.
• Evidence that any required inspections have been conducted. These requirements vary depending on the type of financing you chose and the region in which you live.
• A Certificate of Occupancy may be required if you are purchasing a newly constructed home or one that has undergone certain types of renovations.

Next, you can schedule your closing date. All involved parties are contacted to arrange a convenient time and location. Closing procedures and associated fees vary depending on where you live. Prior to closing, you'll be notified of the exact amount you'll need to close so you can arrange to bring a certified or cashier's check for that amount to the closing.

4. Closing

The closing is a formal meeting between you and a closing title company agent to collect any outstanding documentation and fees and to sign the paperwork. The closing agent will also provide you with a copy of the HUD-1 Settlement Statement, which shows all the costs related to the closing - both on your side and on the sellers side. You will be required to sign documents acknowledging your rights to the property you have purchased, your agreement to repay the money you have borrowed, and the lender's right to the property in the event of loan default.

You will also either be given or mailed a first payment letter that states how much your monthly payment will be and details where or when your initial payment should be made.

5. Servicing

After closing, your loan enters the lender’s servicing portfolio where all or the administrative tasks needed to manage your mortgage are taken care of. This includes receiving your monthly payments and applying them to your loan, and managing your escrow account to ensure that your property taxes, hazard insurance premiums, and mortgage insurance premiums are all paid. In addition, you'll receive detailed monthly mortgage account statements, as well as information about other products and services as they become available to you.