First-Time Homebuyer’s Guide: Part 11
How the world’s first Digital Mortgage can benefit you
You shopped and compared your loan options, researched neighborhoods and connected with a real estate agent. Now it’s time to apply for your mortgage.
Thanks to the Digital Mortgage, it’s never been easier. What was once a long and complex process is now simplified and less cumbersome thanks to Rate’s paperless mortgage, the first of its kind.
The traditional way of applying, which typically includes a lengthy phone conversation to provide personal information, scanning, faxing and sending documents through email servers, is still an option for those who wish to go that route. But if you desire a process that is faster, more secure and streamlined, keep reading.
Using the Digital Mortgage allows you to apply anywhere, anytime—all you need is a computer, tablet or smartphone to get started. The process mirrors that of completing the Uniform Residential Loan Application (form 1003) and as you progress, you’ll receive credit scores and get a real approval if you qualify. Eventually, you’ll upload your relevant documents securely and sign your forms digitally—more to come on those steps in Part 14.
The Digital Mortgage also helps the loan officer and his or her team move things along at an efficient pace. They’ll receive notifications as you’ve started your application and will be available to answer any questions you might have along the way. As your documents are uploaded, they’ll be safely stored in one place. An automated to do list with the most common tasks will be created to ensure your mortgage process stays on track.
To begin applying with the Digital Mortgage, visit Rate.com or open the Rate app. You’ll reenter the Intuitive Loan Finder covered in Part 5 as you review interest rates, monthly payments and loan terms. Once you’ve decided what’s best for you, you’re ready to move forward.
Input your contact information, basic loan details and the name of your loan officer if you’re working with one. If accessing the Digital Mortgage via a link from a loan officer, the system may already know who you’re in touch with and therefore won’t ask. If there is a co-borrower, with their permission you’ll need to enter their essential information as well.
Next, submit details about the home you’re looking to purchase and the mortgage you want to secure. You will also provide details about your financial background, including a few specifics regarding your income and bank accounts. Double check your work to ensure everything is accurate, then follow the instructions to create your Digital Mortgage account.
Creating an account will enable you to receive your approval letter and credit scores from all three credit bureaus. It’s at this point you will select your loan type, interest rate and term. Your loan officer will then lock your rate after discussing your application with you.
If all goes well, you’ll next receive your pre-approval letter. Download it for your records, then go directly to your newly created to do list where you may begin uploading documents such as paystubs and tax returns. Your loan officer will be in touch shortly after this point to review your options and discuss subsequent steps, including use of the Transfersafe and DocuSign tools.
If you need to take a break from the process, that’s OK. Simply log back into your account for access when you’re ready to complete it and jump back in where you left off.
With the Digital Mortgage, it’s just that easy. And if you’ve gotten this far, you’re now that much closer to closing on your first home.
In next week’s First-Time Homebuyer’s Guide…
Part 12: Your credit score and the three bureaus