The Loan Process
Prequalification occurs before the loan process actually begins. Your Loan Officer gathers information about your income and debts, and makes a financial determination about how much house you may be able to afford.
It's a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the prequalification process should help you decide whether refinancing is a good idea for you.
The application is the beginning of the loan process. Application should occur while you are shopping for a new property or once you have determined that you wish to refinance the loan on your existing home. We will complete your mortgage application with you right over the phone. All of the exact details and options for your new loan are discussed at this time. Your Loan Officer will deliver to you a full and accurate Quote Worksheet, Good Faith Estimate (GFE) and Truth-In-Lending Disclosure (TIL) that will itemize the rate and fees for your new mortgage. You should begin to gather the required documentation for processing at this point.
3. Processing Your Loan
Once we receive your completed Loan Package from you, your file is assigned to a Loan Processor. Your Processor orders and reviews your appraisal, survey, title work, employment verifications, personal documentation and anything else that is needed for your file. The processor's job is to organize and finalize your entire application package for submission to the lender's Underwriter. You will have direct and open communication with your Loan Processor throughout the entire processing of your loan.
The lender's Underwriter is responsible for determining whether your application package meets all the lender's criteria for approval. If anything provided in your package raises any questions, the Underwriter will place "Conditions" on your file. At this point you will be contacted by your Loan Processor to supply additional documentation to clear your open conditions. Conditions often include simple items like up to date paycheck stubs or bank account statements. If there are any late payments, collections, or judgments in your credit history, it is also not uncommon for the Underwriter to request a brief Letter of Explanation from you.
Once all open conditions in your file have been cleared, the Underwriter will issue your "Clear to Close". Your Processor or Loan Officer will contact you to schedule your closing at the Title Company.
All of your closing documents go through a strict quality control process and all figures are checked and verified before you close. At the closing itself, you will sign your final closing paperwork and we will fund your new loan. Your new funds are wired directly to the Title Company's Closing Agent who disburses all funds according to your HUD-1 Closing Statement.