Get Pre-Qualified
Pre-qualification starts the loan process. Once a lender has gathered information about a borrower's income and debts, a determination can be made as to how much they can borrow. Mortgage companies look at two key factors; the borrower's ability and willingness to repay the loan. Ability to repay a mortgage is evaluated by the borrower's current employment and total income from all sources. A borrower's willingness to repay is closely related to how you have fulfilled previous financial commitments. We will require written authorization to pull credit to make this determination. This step should be done prior to shopping for a home and usually only takes a few minutes of your time. A loan pre-qualification does not constitute an application or a commitment to lend.

Select a Loan Program and Rate
Our experienced mortgage bankers can help evaluate your situation and recommend the most suitable loan program. With so many programs from which to choose, each with different rates, points, and fees it is difficult for a borrower to make sound financial decisions without the help of a knowledgeable loan professional. This step is generally handled within the first couple of days.

Complete the Loan Application and Provide Required Documents
The application is the true start of the loan process. With the aid of your mortgage professional, the borrower completes the application and provides all required documentation. Within 3 business days of completion of your application, your mortgage banker will provide a disclosure pack verifying fees and closing cost estimates associated with the loan for which you have applied.

Processing the Loan Application
Upon receipt of the signed disclosures and required documentation, processing will begin on your loan. The processor will order an appraisal, open escrow, order a title report, and request an insurance binder. The information on the application is verified as required by loan type. Your processor may ask for letters of explanation for any credit issues, employment gaps, or anything else they feel may need further clarification. When the appraisal is completed they will submit your entire loan package to an underwriter. The processor continues to be involved in all requests for additional information and documentation throughout the rest of the loan process.

Appraisal
An appraisal is a formal, written estimation, by a qualified licensed professional, of the current market value of a property. An appraisal is as important as your credit history in obtaining a mortgage and is a critical factor in determining how much you can borrow. Appraisals are usually paid for prior to the inspection taking place. The cost of an appraisal typically ranges from $450 to $650 and normally takes 3 days to 2 weeks to complete.

Underwriting
Once the processor has put together a complete package with all verifications and documentation, the file is sent to an underwriter. The underwriter is responsible for determining whether the loan file is acceptable based on credit, income, asset, and property requirements. If the loan file is deemed to be an acceptable loan, the underwriter issues a conditional approval. Underwriting normally takes 2 to 10 days.

Conditional Approval
A conditional approval states that a lender will offer the loan as long as certain conditions are fulfilled. Most loans will have at least a couple of conditions that will need to be satisfied before documents are ordered. Conditions frequently include additional documentation from the borrower such as current pay stubs or asset verification, appraisal clarifications, and title or insurance corrections, but can include almost anything. Conditions are usually reviewed by the underwriter within 1 to 3 days of receipt. Once all conditions have been met the file is given a clear to close status.

Closing
Once a loan is approved, the processor verifies the closing fees and orders documents. Documents generally are drawn within 1 to 2 days. An appointment is then scheduled with the escrow company for signing. The escrow agent will supply the borrower with the exact funds necessary to close. The funds need to be in the form of a cashier's check. Borrowers also need to bring their driver's licenses and social security cards (or other forms of acceptable identification) to closing. After the documents are signed the escrow agent returns them to the lender who examines them and, if everything is in order, arranges for the funding of the loan. Funding occurs 3 to 4 days after signing.

Summation
All time periods are estimates based on receiving completed documentation, loan approval guidelines, and the services provided by third party vendors. Typically a mortgage transaction takes between 3 to 6 weeks to complete.

Helpful Tips

1.       If additional information or documentation is requested, please provide it immediately.

2.       Read all disclosures carefully and ask questions if you need clarifications. It is best to communicate all requests and clarifications in writing early in the loan process.

3.       Ensure that the income you report on your application is the same income as that which is reported on your tax documents.

4.       Inform your loan officer of any past credit problems.

5.       Review your credit report carefully to verify its accuracy.

6.       Do not apply for any new credit, run up credit lines, or miss any payments.

7.       When signing your closing documents, sign your name exactly as it is printed. For example, you may need to include your middle name or initial in your signature.