A conventional loan is any mortgage which is not guaranteed or insured by the federal government. Conventional loans were the first traditional mortgage loans made by local lenders. The loans were held in the lender’s investment portfolio until they were either paid in full or foreclosed upon. Although it enabled the borrower to build a business relationship with the lender, this practice was generally not in the lender’s best financial interest. When rates rose, lenders found themselves in the position of receiving below-market interest on their loans, in addition to not being able to recycle the funds to lend to other borrowers.
Expert Partners Agree
MJW Financial helped us remortgage our house for a lower interest rate. I chose MJW because they had an A rating which they definitely lived up to. First of all, they were kind and respectful, next they were always “Johnny on the spot” getting the process started right away, keeping the paper process going and always being there with an answer whenever I had a question. They were always available and approachable for questions, never made me feel bad for asking questions. I really was glad I went to them and if I had it to do over again, I would make the same choice. I totally recommend them. I give them an A+ rating.
Jennifer - Refinancing,
STEPS TO SECURING A CONVENTIONAL MORTGAGE LOAN
Below is a brief summary of the mortgage loan process. Please note, this process is not concrete and certain steps of the process may change based on individual situations.Pre-Qualification
- Potential borrower completes loan application, though MJW website or speaking to an MJW loan officer
- MJW pulls credit of potential borrower
- Potential borrower sends in income and asset information to MJW for verification (see list below)
- MJW sends pre-approval letter to real estate agent and borrower – which allows borrower to start browsing potential homes
Loan Process Begins
- Borrower puts offer on potential home
- Accepted purchase contract is sent to MJW by borrower and/or real estate agent
- Simultaneously, borrower contacts insurance agent to get initial quote for new home purchase. Borrower provides MJW with contact information for insurance.
- MJW discusses rates with borrower
- Initial disclosures – which include information previously sent plus additional information requested by loan officer
Underwriting Process
- MJW submits to underwriting.
- MJW orders appraisal of potential home
- MJW receives initial underwriting approval with conditions (i.e. additional items the underwriter is requesting for verification)
- MJW sends back appraisal and conditions to underwriting for review
Additional Requests by Underwriter
- If underwriter has additional request after initial conditions are reviewed, borrower to provide additional documents
- MJW sends back to underwriting for further review.
- Refer to number 3 above for following steps
Clear to Close Issued
- Closing documents (i.e. financial loan documents, mortgage, note) ordered and sent by MJW to title company
- Title company prepares Closing Disclosure Settlement statements (i.e. a document that shows all fees being charged)
- Lender approves Closing Disclosure and sends wire information to title company for closing. Borrower is provided copy of Closing Disclosure so they can prepare for financial closing