Step 1: Preapproval
The very first step all potential homebuyers should take is to get Preapproved. This will allow any homeowner know you are serious and able to afford their home when you make an offer. To do this you must only fill out our application either online or over the phone with your Loan Officer. This also includes having your credit run (only cost at this point) and collecting your financial statements, bank statements and W-2’s. It is also at this point you will discuss with your Loan Officer what type of loan is best for you!
Next is the fun part! You get to go out with your Realtor and find the home that is right for you and know what price range you will be able to afford. Once you have found the right house for you, you make an offer and if it is accepted, you will go into contract. Then our job really begins.
Step 2: Processing
Once you have signed your purchase contract, your Realtor opens Escrow and we will issue an application and disclosures and then the loan will go into Processing. Most of the application and disclosures can be electronically signed, however there are a few disclosures that must be printed, signed and sent back over. This is known as your Loan Estimate (LE) and it will give you a general overview of the costs involved in your loan
Following the signature of all disclosures, an appraisal order form is sent out to you and the appraisal is ordered. You must provide a credit card for the appraisal. This, along with the credit report is the only upfront cost to the borrower. The appraisal usually takes roughly 7-10 days and will be in large part contingent on the availability of the homeowner to allow them into the home and when it can be scheduled with your Re
In the meantime, the Processing department will review the file. Generally within 48 hours. At this time you will be contacted by either the Loan Officer or the Processor for any additional documents needed in order to move the file to Underwriting.
Once the outstanding items are gathered from you the borrower, the escrow company and potentially the real estate agents, the file can be moved to Underwriting where an underwriter will examine your application and issue a loan decision.
Step 3: Underwriting
During this time, it is imperative that you be available to collect any necessary additional documentation and avoid any large purchases or transfers of funds into or out of any of your accounts.
The Processor and/or Loan Officer will review the loan decision issued by underwriting and contact you with outstanding items.
Once all the necessary documents are collected; including the appraisal, the file will go back to underwriting for final review.
At any point during this process, the loan can be “Locked”, which means that your interest rate will be locked in at that interest rate. The Loan Estimate (LE) will then go out to you and an electronic signature via our secure website will be required. Following this Lock, there is a one day minimum waiting period for us to issue Final Disclosures.
After Underwriting clears the loan, we can then issue your Final Closing Disclosure, which is sent electronically. You must then acknowledge receipt of the disclosures via an e-signature and then must wait three days (based on federal regulations) to sign your Final Loan Documents.
Step 4: Funding
Following the three-day waiting period and signature of your Final Loan Documents with the Escrow Company, the loan documents are then returned to us for one last review of any final funding conditions with our Funding Department. Once conditions have been met, we “Fund” your loan, which means we send a Money Wire to a Title Company. Depending on the county of your purchase, it will either record on the same day or the following day and then based on the contract negotiated by your Real Estate Agent, you may then GET YOUR KEYS!