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Mortgage Process Step #1

Renovation Mortgage Process: Documentation Stage

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Welcome to the first step

in the renovation mortgage process!

Welcome to the first step in the mortgage process!

The first step in the mortgage process is the documentation stage, where we review your income, assets, employment history, and other compensating factors to determine your ability to repay a mortgage loan.

This is also an opportunity for you to examine the overall financial impact that a new mortgage will have on your total monthly budget, so that you can choose a loan amount and mortgage program that you are most comfortable with.

Our goal is to obtain a speedy approval. The more thorough you are in preparing your paperwork, the faster we can move together on getting your loan approved and funded.

Mortgage Loan Process

Step 1: Documentation

Step 2: Contractor Selection

Step 3: Renovation Inspections

Step 4: Appraisal

Step 5: Underwriting

Step 6: Conditional Approval

Step 7: Clear To Close

Step 8: Closing

Step 9: Renovation Work Begins

Please feel free to contact us at any time if you have any questions about your loan status or the next steps in the process.

During this stage, we will:

  • Discuss any specific scenario questions including renovation loan program options, property specifications, initial budget estimates, Credit requirements, etc.
  • Understand the renovation loan options available and apply for financing once ready to see what initial figures may look like. (This will be a hard credit pull)
  • If looking to purchase, you may search for a home with your real estate agent and submit an offer.
  • If doing a renovation refinance, you will get actively started with the loan disclosure and documentation steps.

Real Estate Agent and Customer Responsibilities:

  • Provide a copy of the fully executed sales contract and any other requested documentation as soon as practical
  • Real estate agent to order all required inspections (whole home, WDI, septic, etc.) to expedite the scope of work and required repairs reporting
  • Meet with selected contractors early, provide a detailed scope of work and make a timely contractor selection.
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Approval Pitfalls

We believe communication is the key to a smooth mortgage process and we will will hold your hand from the start all the way to closing.

While there are a number of factors outside of your control that can delay or prevent a home loan from closing, the following list will help you stay on the right path.


  • Keep your records in good order
  • Keep your financial records close at hand
  • Be aware that we need to verify income documents
  • Save bank statements
  • Save paystubs


  • Apply for new credit
  • Change jobs during the process
  • Make undocumented bank deposits
  • Payoff debt, charge offs of collections without notification
  • Hesitate to reach out and ask questions

While you are in the process of getting a new mortgage, keep your financial status as stable as possible until the loan is funded and recorded. Any number of minor changes could easily raise a red flag or cause a negative impact on a credit score, and we want to do everything we can to avoid a denied loan.

A few documents we’ll likely need to review include:

Income / Assets:

  • W2’s – from the last two years
  • 1040 federal tax returns – from the last two years
  • Two recent pay stubs
  • Two recent bank statements – all pages
  • Self-Employed: K1 / 1099 / Profit and Loss YTD


  • Current and previous addresses for the previous 2 years
  • Leasing: name and phone number of landlord(s)
  • Investor: copy of lease agreements on rental properties


  • Copy of your driver’s license or state-issued ID for all borrowers

There may also be required documents we may need to review depending on your specific scenario.

Ready to learn more?

Go back to see the overall mortgage process.

Learn about the next step in the mortgage process.