Step 1: THE APPLICATION
The key to the loan process going smoothly is the initial interview. At this time, we will discuss your goals; explain the mortgage process and answer questions that you may have. We will work together to obtain all pertinent documentation so that unnecessary problems and delays may be avoided.
Step 2: PRE-APPROVAL
We will request a credit report and collect all of your income / asset information. If your report and financials meet the loan program guidelines, a pre-approval letter is issued, if applicable.
Step 3: DISCLOSURES
For a home purchase transaction, the realtor will open escrow once the sellers have accepted your offer. Thereafter, we will ask for any missing or updated information that may be needed for a complete loan file. Initial disclosure documents will be sent to you for review and signature.
Step 4: LOAN SUBMISSION
Once we receive your initial disclosure documents back signed and have all of the missing information in place, the loan will be given to the processing department for review. Each lender has a different procedure for when we can order the appraisal. Depending on the lender, we can either order it immediately upon receipt of the signed documents or, in some cases, we might have to wait till 3 business days after the loan is submitted. The cost of an appraisal can range from $425-$775 depending on the property.
Step 5: UNDERWRITING DECISION FOR A
CONDITIONAL LOAN APPROVAL
An underwriting decision for a conditional loan approval generally takes anywhere from 3 – 5 business days. We will notify you of the underwriting decision and if applicable any loan conditions that must be received before the loan can close.
Step 6: CLEAR CONDITIONS
Upon receipt of requested items for final approval, we will work with the lender to clear any conditions. We will keep you informed on the status of the condition review and pending final approval.
Step 7: DOCUMENTS ARE PREPARED
Within one to three days after final loan approval, the lender prepares your loan documents (including the note and deed of trust), which are sent to the title company. The escrow officer will call you to set up an appointment when the papers are ready for your final signature. At that time, you will be informed on how much money, if any, you will need to close the loan. Please keep in mind that you will need to bring a cashier’s check to the appointment, if applicable.
Step 8: FUNDING
Once all parties have signed the loan documents, they are returned to the lender, and the package is reviewed. If all the forms have been properly executed and all conditions met, the lender sends the loan funds by wire transfer.
Step 9: RECORDATION
When the title company receives the wire transfer from the lender, the title company makes the new loan a matter of public record. They do this by recording the note and deed of trust at the county recorder’s office. This is generally done the day after the loan funds.
MAKING YOUR FIRST PAYMENT
Instructions for making your first payment are included in your closing document package. Be sure to review the information carefully to avoid delays in the processing of your payment.