The Mortgage Process

Steps in the Mortgage Process

Needs & Goals

The mortgage process begins with you. There are a number of questions that will need answering when you begin. For example, you may want to start by thinking about the following:

  • What is your price range?
  • What is the amount of down-payment you would like to invest?
  • How much would you be comfortable paying on a monthly basis?
  • How long do you think you will live in the home?

Click Here to use our mortgage calculator and to submit a pre-approval application.

Once you have established these preliminary boundaries, it would be beneficial to speak with a mortgage consultant; together, you can determine the optimal loan amount and program best suited to your needs.

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Pre-Approval

Pre-Approval provides real benefit. Here are several reasons to consider getting pre-approved early in your home buying process:

  • Confidence: Knowing that you are pre-approved for home financing allows you to search for properties with confidence, having eliminated financing issues
  • Credibility: Providing a pre-approval letter increases the credibility of your offer in the eyes of homeowners who often have several offers to consider
  • Agility: Knowing your financing capacity allows you to respond quickly
  • Focus: Getting pre-approved early in your home buying process allows you to focus on the most important goal: finding the perfect home
Click Here to submit a pre-approval application.
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Application

Applying for a mortgage is an important transitional phase in the process. To this point, you may have begun to determine your needs, and may have even become pre-approved online - without the assistance of a mortgage professional. Now, you are ready to formalize the process. Working with a mortgage professional will help you:

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Underwriting

Underwriting is the process of evaluating your credit history, debts, assets, income, and information about the property you are looking to purchase, in order to make a mortgage decision.

General Factors Considered When Underwriting (The 3 C's)

  • Collateral

    The property's value is confirmed by an independent appraisal comparing the subject value with at least three properties that are similar and have sold within the last three to six months in the area

  • Capacity

    The borrower's income and overall debt structure are evaluated to determine that she/he has the ability to pay the loan back on a timely basis.

  • Credit

    The borrower's past credit history is evaluated to make sure that she/he has a history of paying their current obligations on time.

For more specific factors considered when reviewing your loan and other underwriting questions, please visit our website at www.NEMMortgage.com

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Processing

The processing of your loan involves the collection of all outstanding documents that are needed to satisfy the conditions that were set forth by the underwriter in your commitment letter. These conditions could include verifying your income and assets, reviewing the Purchase and Sales Agreement and appraisal, or obtaining information or documentation to substantiate past credit issues, child support/alimony payments, receipt of gift funds, employment information, etc.

For more information on processing your mortgage application please visit our website at www.NEMMortgage.com

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Closing

The closing step completes the process of obtaining a mortgage. Because it often occurs at the same time that you are purchasing a home, it can be a complex and confusing step. The best strategy for a smooth closing is to know what is involved, think ahead, and get help.

The final days and weeks before closing can be a very stressful period of time for both buyers and sellers. There are major steps that need to be taken before the closing can occur.

Steps Required In the Weeks Before Your Closing

  • Setting the Closing Date
  • Selecting a Closing Agent
  • Securing the Title Services
  • Obtaining Homeowner's Insurance
  • Obtaining a Certificate of Occupancy
  • Meeting the Mortgage Conditions
  • Going on the Final Walk-Through Inspection

For further details on the steps required in the weeks before your closing, please visit www.NEMMortgage.com

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State Licenses


Program eligibility is subject to complete underwriting based on program guidelines; not all applicants will qualify.  Offer of credit is subject to credit and property approval. Equal Housing Lender: NMLS ID 2584; MA Lender/Broker License #MC2584 – 52 Second Avenue, Waltham, MA 02451; NH Lender/Broker License # 11360 MB “Licensed by the New Hampshire Banking Department”; RI Licensed Lender: License #20052011LL; RI Licensed Loan Broker License: # 20052012LB; ME Lender License #SLM2431; ME Lender License #SLB4665; CT Lender/Broker License #8731; CT Second Mortgage Lender/Broker License #11581.