VA, FHA, or Conventional Loan: Which One Is Better For You?

Contact our team of certified, knowledgeable, and courteous licensed mortgage specialists to determine which option meets your needs. We understand there is a lot to learn about the mortgage process. That's why we’re dedicated to familiarizing you with the process, the terminology, and the people with whom you’ll work. We take the time to ensure you have the knowledge so that you’re not only informed, but also empowered each step of the way.

Your Loan Officer will review with you the step-by-step process of applying for and receiving a mortgage loan. You will be asked basic questions about your income, expenses, debt load, etc. With the information in the financial snapshot you provide, your Loan Officer can estimate the total cost of your mortgage and monthly payment amount. Then your Loan Officer will perform a brief, basic search of data to begin the pre-qualification process, the first step in determining the loan amount for which you are likely to qualify. Typically, a formal credit report is not requested at this point.

After pre-qualification, you will be shown the best available mortgage scenarios for your unique life situation. Once you decide what is best for your situation, you will then then be taken through the process of pre-approval. The lender will provide a Loan Estimate, which shows the amount you can borrow, and the costs associated with the loan.

Complete an Application Online, By Phone or In Person

The mortgage loan application compiles the information about you and your circumstances in order to present the best opportunity to get the loan you want. It can seem long and daunting, but remember it’s the key to the whole process. Your Forthright Loan Officer will help you through every step. The earlier you can begin gathering the documents and information we will need for your application package, the smoother and shorter the path to loan approval. Your Forthright Loan Officer will advise and direct you to getting the materials needed.

Documentation to accompany your application

Along with submitting a formal loan application, please include proof of earnings and assets and expenses. Income and asset documents can include two years of tax returns with applicable W2s and 1099s, the previous two months' pay stubs, two months of bank, stock and retirement account statements, a list of automobiles owned, and a list of real estate owned with addresses and value. Documents will be needed to prove expenses, including copies of the previous two months' rental checks or mortgage payments, loans (credit cards, auto loans, mortgages and school loans, lines of credit), child support or alimony payment obligations, money judgments, and a copy of a divorce decree, if applicable.

Email/fax back supporting documents

Provided by your Forthright Loan Officer, these statements give you the information you need to know about your mortgage so you can make informed decisions. They include information about your mortgage including the costs you’ll incur, whether your mortgage will be sold and how your escrow account will be established. Please read carefully and feel free to ask any questions you have. We are here to ensure you are fully informed and understand the content herein. Please electronically sign and either email or fax these forms back to us.

Loan officer goes over all disclosures and supporting documents

Now it’s time to review everything you’ve submitted. Your Forthright Loan Officer compiles all information submitted to ensure there are no missing pieces and that all paperwork has been fully completed. If you are not contacted for additional information, your loan application will move forward for processing before being submitted for approval.

Loan is submitted to the junior processor

Your mortgage application is progressing to the junior processor, who will review all elements of your loan application, including the supporting documentation and mortgage disclosures you’ve submitted. The junior loan processor preps and organizes the file before sending it to the underwriter for approval.

The underwriter conducts a detailed analysis of your loan application

Upon receipt of these documents, all elements of your loan application package are analyzed and the level of risk is determined. The underwriter will make a determination on granting conditional loan approval.

Jr. Processor orders services: Mortgage payoff, Homeowners insurance, Title, etc.

The junior processor will order services such as a mortgage payoff (amount owed on the loan to pay off on a specific day), homeowners insurance, title insurance, etc. It's important to provide the contact information for your homeowners insurance as soon as possible if the premium is part of the mortgage payment. You may elect to pay your homeowners insurance separately.

At this time, you may be asked for any additional information or documentation. The junior processor reviews and updates your application accordingly.

One step closer, your conditional approval is subject to additional verification.

Your home loan application has made it to the next step, conditional approval. Not to be confused with final approval, conditional approval is based on the financial and credit information you’ve provided. It's subject to final verification of employment and income, utility bills, bank statements, and pay stubs – all necessary information that’s needed prior to the final thumbs up.

Loan officer asks borrower for conditions if required. Appraisal is ordered

If additional conditions are required, your loan officer will be contacting you to discuss this so that any new information can be obtained. Your home appraisal is ordered and your loan officer will be in touch with you about the condition report and the rating the property received in the appraisal.

Appraisals require a condition rating, determined by exhibits for appraisals (exterior and interior photographs of the property) and property condition ratings ranging from C1 (new property), C2 (little or no physical depreciation, perhaps recent updates), and C3 (well maintained, might need some updates), to C4 (minimal repairs needed), C5 (significant repairs needed), and C6 (major repairs required).

Senior processor clears conditions and submits to underwriting

When all conditions are cleared, including your Conditions of Appraisal that indicates the condition of the property has met the requirements of the loan, you’re in the home stretch as your loan application is submitted one final time to underwriting for the final approval.

Underwriter gives final approval

Forthright Funding’s team of expert underwriters check the information on your application and all supporting documents. In this final phase, they will call your employer to confirm employment status and salary. If you are self-employed, most likely there will be additional documentation required. Verification documentation varies depending on what your level of risk is determined to be.

Appointment is set to sign closing documents with certified notary

Before your closing day appointment, you will participate in a walk-through inspection. You can choose the location where your closing documents will be signed and notarized, except in Texas where the closing must occur at the title agency. On closing day, all parties involved will sign the papers that make it official. This is also when any remaining funds you owe will be due. We recommend you gather all documentation you have received during the mortgage loan process to bring to your appointment. If any last minute updates or changes have occurred, it’s important that these be reflected in the closing documents. At this time, ownership of the property will be transferred to you. Only one more step to go…the transfer of funds!

Loan funds!

Forthright Funding wires the approved funds into your account. This occurs the day of closing for purchase loans and three business days later for refinance loans. When your loan is funded, your mortgage is officially recorded by the title company and your new deed is registered. The keys to the property are then handed over to you.

Congratulations!

The home of your dreams is now yours. Forthright Funding is your proud partner not just during these financing approval phases but throughout the length of your home mortgage. Our caring team of mortgage specialists are here for you to answer any questions you may have. We’re with you every step of the way.