Loan Process

What should I expect during the loan process?

Step #1.  Getting Documentation In Order For the Loan Interview
             
A loan application is filled out, and basic file documentation is collected. (i.e pay stubs, W-2’s, rental agreements, bank statements etc.) Current debt information is obtained. A pre-qualifying credit report is pulled to verify current credit status and past credit history, while a preliminary title report is ordered, and escrow is opened.

Step #2. The client’s file is reviewed and pre-qualified while loan scenarios and
terms (i.e. type of loan, amount, interest rate, etc.) are determined and agreed upon by the borrower and co-borrower, if applicable. Your loan representative begins to verify the conditions of the loan to set you up for closing. This concerns, setting up the appraisal for the house you’re planning to finance and conducting a final review of your financial situation and current credit history before proceeding with the loan.

Step #3. The appraisal is received, while any remaining documentation is collected, and any needed verifications of employment, deposits, assets, or liabilities are obtained. The loan is locked and submitted for underwriting and approval. An underwriter looks at four factors to determine, if you are a viable  candidate for loan approval. Your employment/income, your assets, your credit history, and the value of the home you intend to finance are all factors in the underwriter’s ultimate decision of whether to fund your loan or not.

Step #4.  The loan documents are ordered from the lender and delivered to escrow for signing. At this time, you will be presented with a closing packet that includes a HUD-1 Settlement Statement, a Truth-in-Lending disclosure packet, a Mortgage Note, an Affidavit Packet, and a Property Deed.  After signing, the loan is funded by the lender. The Deed of Trust is recorded at the county recorder’s office, and the funds are dispersed by the escrow company.