Mortgage Life Cycle

Mortgage Life Cycle

Every mortgage loan goes through a series of stages during its term. We call this The Mortgage Life Cycle. We’ll expand on these a little later: for now, let’s focus on becoming familiar with the six stages

The customer completes a loan application and provides any necessary verification documentation.

Loan Processing
The loan processor reviews and verifies all information provided and requests any additional or missing documents.

Underwriters assess the customer’s creditworthiness and decide to approve or deny the loan.

Closing / Funding
The customer signs all legal loan documents, the mortgage proceeds are disbursed and the title of the property passes from the seller to the buyer.

Secondary Marketing
Mortgage bankers sell existing mortgages to investors, such as insurance companies, pension funds or government agencies.

Loan Servicing
Loan servicing teams process payments, address customers’ concerns and manage delinquencies.

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