Five Step Mortgage Process

Taking the first step

your journey to owning a new home

At Shea, we not only want you to feel confident in your home buying decision, but also well-equipped for the journey ahead. That's why we've provided the following steps to walk you through an easy mortgage process, making your journey home as simple as possible.

Resource Accordion

  • get organized

    take stock of your financial situation

    Gather your important documents and information:

    • Last two recent paycheck stubs

    • Last W-2 and tax returns

    • Recent bank and other asset statements

    • Residential history for past two years

    • Current real estate holdings

    Figure out your household income, before taxes:

    • Include overtime, bonuses, and commissions

    • Calculate your monthly gross income.

    Estimate your ongoing monthly debts:

    • Include car payments, student loans, credit card payments, etc

    • Do NOT include “bill payments” such as day care, cell phone, or utilities

    buyers's tip
    make documentation easy

    • Take a file folder and label it “Income.” Place copies of your pay stubs and tax returns in this folder.

    • Take a second folder and label it “Debits.” Place statements from loans or revolving debts in this folder.

    • Keep these folders separate and organized to expedite documentation!

  • calculate a budget

    determine your monthly house payment

    Your “Debt-to-Income Ratio,” or DTI, is determined by taking your total monthly debt payments and dividing by your total monthly income. Most mortgage companies use a DTI of 45% to determine the amount you can borrow. To calculate your home budget:
     

    • Multiply your gross monthly income by 45% to get your total max payments.

    • Subtract your current monthly debts from your total max payments.

    • The resulting number is your new home budget payment.

    Know how your payment breaks down
    buyers's tip

    Your monthly mortgage payment is split into four different components, referred to as PITI:

    • Principal: goes toward the loan amount that you owe.

    • Interest: goes toward the interest that your lender charges.

    • Taxes: goes toward your local property taxes.

    • Insurance: goes toward your homeowner’s insurance coverage.

    • There may be additional payment obligations, such as HOA fees and Private Mortgage Insurance (PMI).

  • Get pre-qualified by a loan originator

    Make a Plan

    During the pre-qualification process, your loan originator will:

    • Explain the entire process to you, answering any questions you may have.

    • Review your income, assets, debts, and credit to establish where you stand.

    • Go over the different mortgage options and help you find one that’s right for you.

    • Work with you to set up a financing strategy for buying your new home.

    Set your game plan with Shea
    buyers's tip

    Our pre-qualification service is free, and does not obligate you in any way to Shea Mortgage. It’s just our way to give you a hand during this process, and to help you feel secure in a solid financing strategy that makes for an easy mortgage.

  • apply for a loan

    complete a loan application

    Go to Shea Mortgage to start your online mortgage application. Once we receive your request, a licensed Shea Mortgage loan originator will contact you to review your information, address your questions or concerns, and provide you with a detailed explanation of mortgage interest rates and closing costs. We’re happy to be able to partner with you on this exciting journey!

    Have your 2-2-2 handy
    buyers's tip

    The “2-2-2” stands for two years of tax returns, two months of recent bank statements, and two pay stubs. Having these documents ready makes your loan application process go much smoother.

  • get ready for closing

    make the final preparations

    Around 45-60 days prior to your estimated closing date, you’ll want to start getting ready:

    • Review your application and let us know if anything has changed.

    • Talk to your loan originator about locking in your interest rate.

    • If you’re saving funds to close, check with your loan originator to see how you are tracking.

    • Select an agent for hazard insurance, and have them contact your loan processor to get set up for closing.

    On closing day, bring your photo ID and closing funds to complete your final paperwork. Then there’s only one thing left to do: move in!

    Keep your documents nearby
    buyers's tip

    Hold onto your tax returns, pay stubs, and statements in case your loan processor requests them. Even if your loan was approved early on, mortgage lenders have to have current financial information dated within 30 days of closing.

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