How a mortgage works, from application to the last payment
Process map by Brian. 16 steps, 2 layers. Tags: finance, real estate, mortgage, money.
- Buyer: Check credit and save a down payment
- Lender (bank): Get pre-approved for an amount
- Buyer: Find a home and make an offer
- Seller: Does the seller accept?
- Appraiser: Value the home
- Lender (bank): Is the home worth the loan?
- Lender (bank): Underwriting: verify income, debts and assets
- Lender (bank): Approve the loan and set the rate
- Buyer: Sign and close, and pay closing costs
- Buyer: Pay monthly: part interest, part principal
- Buyer: After years the loan is paid off and the home is fully yours
- Buyer: Renegotiate the price or add cash