The Loan Process
The Detailed Loan Process
*Purchases*
*Purchases*
There have been many changes in the industry this year, so here is a fairly detailed summary of the loan process for a purchase. This is my recommendation, and will include documents you need to provide.
The single most important thing you can do is get “Pre-Approved.”
To help insure a smooth transaction which closes on time, you must get Pre-Approved BEFORE making an offer and thus entering into a Purchase Agreement.
Here’s how you get Pre-Approved with our company as a Mortgage Banker.
1. We start by taking the Loan Application, either over the phone, or you can fill out our user-friendly form at your convenience, and send back to us.
2. We will collect your credit card information so you can pay for the credit report (Approx. $26), and eventually the appraisal fee. This allows us to complete the loan application by populating the liabilities section, and we will know your FICO score to accurately price the interest rate you choose.
3. I can then run the "Automated Approval," and assuming we get an "Approve" finding, you now have credit approval and I am able to write a "Pre-Approval" letter for you. You are now free to make offers on a home.
4. Concurrently, you will send to us the following documents:
a. Pay stubs for past 30 days for all borrowers.
b. Bank Statements (all pages) for all accounts included on the loan application.
c. W2s for past two years for all borrowers.
d. Evidence of Homeowner’s Insurance (Declaration Page) Note: This will be supplied at the end of the process for a purchase.
e. Copies of Driver’s License
5. You send in the Purchase Agreement with all addendums.
6. Once you are in contract, we will "Disclose" to you by sending out all Loan Application forms, and all Disclosures to sign, including the Good Faith Estimate.
7. After you indicate your "Intent to Proceed," we are able to order an appraisal the next day..
8. We order the appraisal, and the cost is charged to your credit card you supplied earlier.
9. We order and receive the Preliminary Title Report from the Title Company.
10. The appraisal is received after approx. 5-7 days.
11. The complete loan file is submitted to the lender. Lender takes 2-4 days to underwrite the loan, and gives conditional approval.
12. Conditions are submitted, signed off and we are “Clear to Close.”
13. Documents are ordered and sent to Title.
14. You sign off.
15. Loan Funds.
16. Close of escrow – Loan Records and Title passes. You get the house keys.
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The Detailed Loan Process
*Refinance*
1. We start by taking the Loan Application, either over the phone, or you can fill out our user-friendly form at your convenience, and send back to us.
2. We will collect your credit card information so you can pay for the credit report (Approx. $26), and eventually the appraisal fee. This allows us to complete the loan application by populating the liabilities section, and we will know your FICO score to accurately price the interest rate you choose.
3. I can then run the "Automated Approval," which helps determine what the lender may ask for.
4. Concurrently, you will send to us the following documents:
a. Pay stubs for past 30 days for all borrowers.
b. Bank Statements (all pages) for all accounts included on the loan application.
c. W2s for past two years for all borrowers.
d. Evidence of Homeowner’s Insurance (Declaration Page)
e. Copies of Driver’s License
5. We will then "Disclose" to you by sending out all Loan Application forms, and all Disclosures to sign, including the Good Faith Estimate.
6. After you indicate your "Intent to Proceed," we are able to order an appraisal the next day..
7. We order the appraisal, and the cost is charged to your credit card you supplied earlier.
8. We order and receive the Preliminary Title Report from the Title Company.
9. The appraisal is received after approx. 5-7 days.
10. The complete loan file is submitted to the lender. Lender takes 2-4 days to underwrite the loan, and gives conditional approval.
11. Conditions are submitted, signed off and we are “Clear to Close.”
12. Documents are ordered and sent to Title.
13. You sign off.
14. The Loan Funds.
15. Close of escrow – Loan Records and Title passes.
