We want you to understand the process ahead as we work together on your loan. There will be a few more points of interaction. Our goal is to clearly outline the transaction timeline & to clearly request & receive the documents required to get the loan approved. We are excited to work with you.
Choose The Right Lender:
The difference between having a good experience and being frustrated or even let down if often all about picking the right lender. There are a variety or loan officers with various levels of experience. It is our top prioroty to give you advice you can rely on and to see you happy when you close.
Understand the terms of a new loan including payment, down payment, closing costs, interest rate, & if it will work for you. Then, learn if you can in fact get that loan. This is done by providing all requested documents and information to your loan officer for review. Always, before spending time and money confirm you qualify by getting a preapproval.
Sign Application & Deliver Requested Documents:
After taking your loan application we will send the application to you to be signed. Please promptly sign the application. These days, this is typically done electronically. There are also a few forms that need to be printed, signed, and returned to us. Please refer to our checklist “What We’ll Need” for a complete list of these documents, and return them to us as soon as possible. If you are purchasing a home and you gave the documents to us at pre-approval, please realize that many of them (credit reports, pay-stubs, bank statements, etc.) need to be updated after 90 days. With the signed application and required documents in hand, we can turn your file over to the loan processing team.
Loan processing includes gathering and verifying information about your loan file for the underwriter to review. For example, loan processors will complete a verification of employment and order the home appraisal. Often, after careful review, the loan processor will request additional documentation to ensure your file is complete for the underwriter, who will ultimately approve your loan. When your loan is submitted to underwriting, you’ll typically receive a revised loan estimate, because the loan processor will have calculated the loan amount and other details based on the documentation acquired.
A home appraisal is ordered on most loans. The appraisal will establish the market value, features, and condition of the property being used as collateral for the loan. Most residential mortgage loan types require the home to be in marketable condition and meet certain health and safety standards. Check with us to ensure the property will be acceptable.
The loan processor will give your file to the underwriter, who will then examine all documents that should support the information on the loan application. The underwriter also checks your qualifications against the loan program requirements. If you meet all requirements, your loan will be approved. Often, the underwriter will identify discrepancies or have questions that require additional documentation from you and third parties to resolve. The underwriter will note these as “conditions” of approval. The file is returned to the loan processor, whose goal is to satisfy those conditions as quickly as possible. Keep an eye out for a request for additional documents once the loan is underwritten.
Your loan is resubmitted to underwriting once all conditions are documented and in the file. The underwriter examines these additional documents and confirms that they satisfy the conditions. At the time of final loan approval, your employment and credit is re-checked to ensure no changes have been made; any changes would render the underwriting decision invalid. Once all conditions are signed off, the file achieves “final approval” status, also known as a “clear to close”.
The loan processor receives the final approval and requests that closing documents be prepared. One of those documents is a closing disclosure. The closing disclosure must be given to you at least three days ahead of closing. Carefully examine the closing disclosure and discuss any questions with your loan originator. Once the loan-closing documents are produced, the title company will send a signer to you.
Prepare for Closing:
The loan processor receives the final approval and requests that closing documents be prepared. One of those documents is a closing disclosure. The closing disclosure must be given to you at least three days ahead of closing. Carefully examine the closing disclosure and discuss any questions with your loan originator. Once the loan-closing documents are produced, you will sign the documents at the title company or they can send a signer to you.
With the signed closing documents, the lender will review and authorize funding of the loan. If the loan is a refinance on a primary residence, there is a three-day rescission period from singing that has to expire prior to funding. Once funding is received, the title company will record the deed of trust and disburse the funds as outlined on the closing disclosure. If you are expecting proceeds from the loan, it will usually come from the title company as a mailed check or a wire, based on your instructions.