The key to a smooth loan process is the initial interview. This can be done in person, over the phone, via email, or any combination of those. At this time, I’ll paint myself a picture of what your plans may be by asking you a series of questions. Once I have a better understanding of your financial needs and requests, I will send you a loan application or have you download one from the top of this page. I will then obtain all pertinent documentation so unnecessary problems and delays may be avoided.
2. Ordering Documentation – Pending approval, I will then request a credit report, an appraisal on the new property, a preliminary title report, verifications of employment and funds to close, mortgage or landlord ratings, and any other necessary supporting documentation.
3. Awaiting Documentation – Within a short period of time, I will begin to receive the supporting documentation. As it comes in, I check for any problems that might arise and requests any additional items needed.
4. Loan Submission – Once all the necessary documentation is in, I assemble the loan package and submit it to the underwriter for approval.
5. Loan Approval – Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions which must be cleared before documents can be drawn or the loan can close. The loan approval is the beginning of the closing process.
6. Documents are Drawn – The loan documents (including the note and deed of trust) are completed and sent to the title company. The Escrow officer will make an appointment for the borrowers to sign the final documents. At this time, the borrowers are told how much money they will need to bring in to close the loan. Payment is usually made by a cashier’s check.
7. Funding – Once all parties have signed the loan documents, they are returned to the lender who reviews the package. If all the forms have been property executed, the check is issued to fund the loan. If not, additional documentation may be required by the underwriter in order to fund the loan (these are called prior-to-funding conditions).
8. Recording – Upon receipt of the loan funds, the title company will record the legal documents necessary to transfer the property into the buyer’s name. At the same time, the deed of trust is recorded to show the new loan on the property. Escrow is now officially closed for the transaction and you’re done with the process!