The mortgage process doesn't have to be complicated.
I've been helping homebuyers and homeowners with mortgage financing since 1999, and I've found that much of the stress associated with getting a mortgage comes from simply not knowing what happens next.
My approach is to explain the process upfront, identify potential issues as early as possible, and remain personally involved with your loan through closing.
Whether you're buying a home or refinancing an existing mortgage, here's what you can expect when working with Capital Funding Mortgage.
— John Madden
Owner, Capital Funding Mortgage Associates
Mortgage Professional Since 1999 | NMLS #960139
Before selecting a mortgage, I want to understand what you're trying to accomplish.
For a home purchase, we'll discuss your anticipated purchase price, down payment, income, assets, credit and monthly payment goals.
For a refinance, we'll look at your current mortgage, interest rate, remaining balance, remaining term, property value and what you want the refinance to accomplish.
The objective isn't simply to answer:
“Can you qualify?”
I also want to answer:
“What mortgage structure makes the most sense for you?”
If you're buying, we'll determine how much you can reasonably finance and which mortgage programs may be appropriate.
A strong pre-approval is particularly important before making an offer.
I prefer to identify potential income, credit, asset or underwriting issues before you're under contract, rather than after you've agreed to a closing date.
Once you're ready to make an offer, we can provide the appropriate pre-approval documentation.
GET PRE-APPROVED →
For a refinance, this step is different.
I'll evaluate your existing mortgage against available refinance options and show you the numbers.
That means looking beyond the interest rate and considering:
Closing Costs + Monthly Savings + Remaining Loan Term + Principal Reduction + Break-Even Period
A lower rate doesn't automatically mean refinancing makes sense.
LEARN ABOUT REFINANCING →
There can be more than one way to finance the same property.
Depending on your situation, we may evaluate options such as:
Capital Funding Mortgage is an independent mortgage broker, so we aren't limited to the products and pricing of one bank.
I can compare available options from multiple wholesale lenders and help you understand the differences.
This is one of the most important parts of my process.
Never evaluate a mortgage solely by the interest rate.
Interest rate and closing costs are connected.
A lender may offer a lower interest rate but require substantial points or additional costs to obtain it. Another option may have a slightly higher rate but considerably lower costs or a lender credit.
I'll explain:
That allows you to make an informed comparison rather than simply choosing the lowest advertised rate.
Once you've decided to proceed, we'll complete or update your formal mortgage application.
For a purchase transaction, this includes the actual property address, purchase price, down payment and other details from your Agreement of Sale.
For a refinance, we'll confirm your current mortgage information, estimated property value and the structure of the new loan.
You'll also receive the required mortgage disclosures.
I'll be available to answer questions about the disclosures rather than expecting you to figure everything out on your own.
The lender will need documentation to verify information used to qualify for the mortgage.
Depending on your circumstances, that may include:
Not every borrower needs the same documents.
My preference is to collect what we know we'll need early, because incomplete documentation is one of the easiest ways to create unnecessary delays.
Many mortgage transactions require an appraisal.
The appraisal provides the lender with an independent opinion of the property's value and information about the property itself.
For a purchase, the appraisal helps determine whether the property provides adequate collateral for the proposed mortgage.
For a refinance, the appraised value can affect the loan-to-value ratio and therefore potentially affect the available financing.
Some transactions may qualify for an appraisal waiver or alternative valuation method depending upon the applicable loan program and lender requirements.
I'll let you know what applies to your particular loan.
Once the loan file is sufficiently complete, it goes to underwriting.
The underwriter reviews the borrower's qualifications and the property to determine whether the loan meets the applicable program and lender requirements.
The underwriter may review:
Most loans don't go directly from underwriting to final approval.
They typically receive a conditional approval first.
A conditional approval means the underwriter has reviewed the loan but needs additional information or documentation before issuing final approval.
Conditions might be very simple, such as an updated bank statement or clarification of a deposit.
Other conditions can require more work.
This is one of the areas where experience matters.
If an underwriter raises a question, I want to understand exactly what the underwriter needs and why, so we can address the issue efficiently rather than sending unnecessary documentation back and forth.
Once all required underwriting conditions have been satisfactorily completed, the lender can issue final approval.
This is commonly referred to as being:
Clear to Close.
At this stage, the lender, title company or closing agent prepares for settlement and confirms the final figures.
Before closing, you'll receive a Closing Disclosure showing the final terms and financial details of the mortgage transaction.
It includes information such as:
I review the Closing Disclosure as well.
One thing I pay particular attention to is whether the actual loan costs are consistent with what we discussed and quoted.
I also help clients understand the difference between actual closing costs and items such as prepaid interest and escrow deposits.
At closing, you'll sign the final mortgage documents and complete the transaction.
For a purchase, ownership of the property is transferred according to the closing arrangements.
For a refinance, the new mortgage replaces the existing financing according to the terms of the transaction.
Before closing, we'll make sure you know:
Where the closing will occur
What identification is required
How much money, if any, you need to provide
How the funds should be delivered
What documents you'll be signing
There shouldn't be major financial surprises at the closing table.
Not every mortgage follows a perfectly straight path.
An appraisal can create an issue.
An underwriter may calculate income differently than expected.
A large bank deposit may need to be documented.
A property or condominium may raise a financing question.
An employment situation can change.
After more than 25 years in mortgage lending, I've dealt with many situations that require more than simply uploading another document.
When a problem occurs, my approach is:
Identify the actual issue.
Determine which guideline is creating the problem.
Find out what documentation could resolve it.
Determine whether another mortgage structure or lender provides a reasonable alternative.
Because Capital Funding Mortgage works with multiple wholesale lenders, we're not necessarily limited to one lender's product lineup or underwriting approach.
One of the biggest differences between Capital Funding Mortgage and a large call-center lender is that you know who is handling your mortgage.
You work directly with me.
I'm involved from the initial conversation through closing.
That is especially important when you're purchasing a home and your Realtor needs a pre-approval update on a weekend, you have a question about a rate lock, or something unexpected occurs during underwriting.
My goal is simple:
Keep you informed, solve problems quickly and get your mortgage to closing without unnecessary surprises.
Capital Funding Mortgage Associates is an independent mortgage broker located in Newtown, Bucks County, Pennsylvania, serving homebuyers and homeowners throughout Pennsylvania and New Jersey.
Whether you're purchasing a home or considering refinancing, you're welcome to contact me to discuss your situation before submitting an application.
You don't need to apply for a mortgage just to ask a question.
Owner, Capital Funding Mortgage Associates
Mortgage Professional Since 1999
NMLS #960748
CONTACT JOHN Direct at 215 601 6724 →
