Here’s how the mortgage process works:
- Mortgage Application
The first step in the mortgage process is completing an application. With Vermont Mortgage Company, your mortgage application can be completed online, over the phone, or in person. Once submitted, you’ll need to sign various forms that authorize us to process your loan and deliver your documentation, such as bank statements, pay stubs, and W2s. (See below for full documentation requirements.) Tip: If you fax, email, or drop off these documents, the process takes only an hour or so. Once all of your information is received, we order an appraisal from a Vermont licensed appraiser and a title policy from an attorney.
- Mortgage Processing
Your documentation is sent to a processor who verifies and validates all the information to be truthful and accurate. Verification requests may be sent to your employers, mortgage holder/landlord, and financial institutions. When all the information is collected, the processor then verifies that basic loan requirements have been met. If so, the file is packaged in a manner the lender specifies and sent to the underwriting department of the lender. Note: If your loan qualifies for automated mortgage underwriting, the documentation requirements are often cut in half.
- Mortgage Underwriting
The underwriter reviews your loan package to make sure it conforms to all the guidelines required for that loan program. They also review the appraisal and title report, at which time additional validation of employment, mortgage payments, credit, and other details may be performed. Note: The underwriter makes the ultimate decision for the approval of your loan. The time this takes is driven by the volume in the market. If the market is flooded, decisions may take up to two weeks, but under normal conditions it takes just two to three days.
- Conditions To Close
When the underwriter is done reviewing your loan, we will contact you about its status and inform you of the “conditions to close,” meaning any outstanding documentation needed for full approval. When these needs have been satisfied, you’ll receive final approval and a “clear to close.”
- Clear To Close
When you are “cleared to close,” we’ll coordinate all the parties involved, and schedule a time and location to sign the final documents to close the loan.
- Draw Documents/Closing
Once the closing is scheduled, the lender then draws the document package and sends it to the closing attorney, usually sent via email. Lastly, you’ll meet, sign the papers, and pick up the keys to your new home!
Address: 135 College Street, Suite 2, Burlington, VT 05401