The Loan Process: an Overview
Below you will find the general steps that are taken during the application for a mortgage. Please contact our highly experienced loan officers if you have any specific questions about your loan or to apply for a loan today!
Part I: Application and SubmissionA loan officer takes your application. One of our loan officers will take your application either in-person or over the phone. During this step you will discuss why you are applying for a mortgage and what type of mortgage you are interested in.
You Receive the Document Checklist. Our processors will send you a personalized document checklist for your application. You can find a general list of documents by clicking HERE.
Complete the Online Authorization. Using our website, complete the online application and authorizations.
Send the Requested Documents. Send the documents from the checklist to your processor or loan officer. *
Your Application File is Complete. Once we have the online authorization and requested documents, we will pull a credit report. Your loan officer will contact you to discuss mortgage options available from various lenders that best meet your needs and goals. Please take full advantage of our experienced loan officers to help you select the program that is right for you. At this time you will also select a settlement company to handle both the title search and the closing of the loan.
Disclosure Package Delivered. Our processors will prepare and deliver to you by secure email a package containing the initial disclosures and other documents for your loan application.
Meet with the Loan Officer to Sign Disclosures. You will schedule a time to meet with your loan officer to sign the disclosures. These will give you information about the mortgage you are applying for, as well as give us permission to request documents such as Appraisals, IRS Transcripts, and more.
Submit the loan application to the lender. Our processors will submit the loan application to the lender for approval.
Part II: The Approval ProcessThird-Party Providers. Our processors will order the documents and services necessary for a mortgage which can vary depending on the type of loan. These include an Appraisal, Title Commitment and IRS Transcripts.
Appraisal Appointment. If your loan requires an appraisal, you will need to schedule a time for the appraiser to inspect your house. In general, the appraiser will be calling you to set up an appointment within a week of signing the initial loan documents.
Conditional Loan Approval. After your loan has been underwritten by the lender they provide an initial loan approval. They may request additional documents as conditions for final approval. Your processor will contact you for any documentation needed from you, and will also request documents from third parties as needed (such as Homeowner’s Insurance, Verifications of Employment, Property Management Information, etc.).
Adjusting the Loan Amount. Depending on the appraised value of the property and certain other factors your loan officer may suggest adjusting the principal amount of the mortgage to better meet your needs.
Locking in the Rate. At any time after application your loan officer can lock you into a certain interest rate. There are different costs and benefits to locking in a rate at a certain time. Your loan officer will always help you figure out when to lock in your interest rate.
Part III: Settlement and BeyondClear to Close. Great news! The lender has cleared all of their requirements and we can now set up settlement. Your loan officer and closing agent will schedule a time and date that is convenient for you.
Settlement. You meet with the settlement agent to sign the closing documents (such as the Note, or Deed in some cases). At this time you will receive the final documents showing the details of your new mortgage. You will also bring any funds needed to close, such as the purchase down payment.
Rescission Period (Owner-Occupied refinances only!). If you are refinancing, you will have three business days from signing the closing documents to rescind your loan application. If you decide you no longer want this mortgage, you can change your mind within this time period.
Funding the Loan. After the closing (or the rescission period) is complete the lender will send the funds for the loan to the settlement company. You will then receive any funds due to you as well as funds being sent to your previous lender, the seller of the property, or other interested parties.
Making your First Mortgage Payment. After settlement you will receive a document package from your new lender with all the information you will need to make your first mortgage payment. Always feel free to contact your loan officer to confirm when you should make your first payment, and with any other questions you may have about your loan.
*NOTE: You do not have to send in any financial documentation in order to obtain a Good Faith Estimate of settlement charges from us. However, if you elect to send in your documentation right away, it will significantly expedite the approval process.