New Mexico Home Loan Process
We realize there is a lot of paperwork involved in applying for a mortgage. Everything we ask for is to follow good lending guidelines and ultimately protects you.
We’ll start with the loan application, which will detail information about your employment and credit history, current finances, and the property you want to buy. This information will help determine both your willingness and ability to repay the mortgage.
The first thing we’ll all need to know is how much you want to borrow. The maximum loan amount will be based on the appraised value of the property and your personal financial ability. Usually a down payment is required and if, for whatever reason, the appraisal is below the asking price, a larger down payment might be required. The best terms are available to people who provide 20% down, however, Dimond Mortgage offers many programs that require little or no money down.
Factors that could affect the loan decision include your credit history, whether your reported income is sufficient, whether the appraisal justifies the loan amount you requested. If your loan is denied through traditional lenders, Dimond Mortgage has additional investors and programs that still might result in an approval.
Since many files are now submitted electronically, an approval can be made within hours, no more than 24. It used to be common for closings to take 30 days after you submitted all the necessary information. Today, although every situation is different, with an appraisal and title binder Dimond Mortgage can often close a loan within three or four days of receiving the paperwork.
Steps that Lead to Home Loan Closing
New Mexico Mortgage Processing – As noted, the timing depends greatly on how long it takes to get an appraisal and a title binder. The processor reviews your credit report, verifies your debt and payment histories, reviews the appraisal and survey, and checks for property issues that might require further investigation.
Loan Underwriting – The underwriter decides whether the combined package passed over by the processor is acceptable. If more information is needed, you will be contacted. More often, thanks to electronic loan submission, many lenders underwrite immediately and only require faxed documents verification. Same-day approvals are common.
Pre-Closing – Title insurance is ordered, any approval contingencies are met, and a closing time is scheduled.
Mortgage Closing – All loan documents are signed, and we fund the mortgage to the seller in exchange for the title to the property. Welcome to your new home!