UNDERSTANDING THE HOME LOAN PROCESS


During the homebuying process, every moment counts. Because of this, the timing of various steps in the loan process is critical. Now more than ever, it is important to set proper expectations regarding the length of time for the mortgage process when purchasing your new home.

Waterstone Mortgage has created various tools and tips to assist you through the process. The proprietary loan calendar tool on this page allows you to create a custom loan process schedule. Simply enter your home loan application date and desired closing date, and the calendar will automatically fill in all the important loan milestones (along with their anticipated dates). It’s an easy and useful way to get started in the home loan process!
 
Another important tip: during the loan process, you will receive two disclosures – the Loan Estimate and the Closing Disclosure. These documents were designed to help homebuyers navigate the homebuying process with more clarity. Find out more about these documents and what they mean for homebuyers like you: 
 
Loan Estimate
 
What is it?
  • A 3-page document explain the key features and costs of your loan
 
What information is included in it?
  • Potential risks of the loan (such as whether the interest rate or payment can increase, and its maximum amount)
  • Loan amount
  • Interest rate
  • Annual Percentage Rate (APR) – which includes the interest rate, discount points, mortgage broker fees, and other charges associated with the loan 
 
When do I receive it, and what should I do?
  • You will receive it no later than 3 business days after Waterstone Mortgage receives your home loan application
  • You will also receive instructions on indicating your intent to proceed with the loan
 
Why is it important?
  • Waterstone Mortgage cannot move forward with the loan (by requesting additional information from you) until you receive your Loan Estimate and indicate your intent to proceed
 
Closing Disclosure 
 
What is it?
  • A 5-page document that matches the Loan Estimate, but contains additional details and information
 
What information is included in it?
  • The total interest paid (TIP) over the life of the loan, expressed as a percentage of the principal amount
  • A detailed listing of closing costs
  • A disclosure of whether the loan has scheduled or potential negative amortization (which means the loan amount will increase)
  • Information on whether your lender will accept partial mortgage payments
  • Details about the coverage, costs, and risks of your escrow account, if you have one
  • A disclosure on whether state law may protect you from liability for an unpaid balance if the property is foreclosed on
 
When do I receive it, and what should I do?
  • You will receive it no later than 3 business days before your scheduled closing
  • Review the information for accuracy and contact Waterstone Mortgage with any questions
 
Why is this important?
This lists all the vital financial information you need to understand before closing on your home loan