The loan process goes like this…
Complete your application with your chosen lender.
Submit all income and asset documentation. Your lender will need every page of every document requested – bank statements, your tax returns and W-2 statements from the previous two years.
Sign and initial the application and disclosures either at your lender’s office, or via mail and send back.
Once the lender has the above, the file will be turned in to processing. Once processed it will then go into underwriting.
While in underwriting you may be contacted for more information. The sooner you get that information back to them, the faster the loan gets closed.
You find a dream home, then what happens to the loan?
Write an earnest money check to go with your offer. This is a deposit toward your down payment.
Loan disclosures will be sent to you for approval. Once approved, and once the inspection has been signed off, an appraisal will be scheduled.
The appraisal is charged to you. If it comes back “subject to repairs,” the repairs will all need to be done before closing and the appraiser will need to go back out to verify completion. There is an additional fee for the verification if it’s necessary.
Secure insurance for the property. The bill will be paid at closing.
Are we done yet? (Nope.)
Once all of the previous is done, the file is submitted for final loan approval. The processor will do last minute employment verifications and will refresh your credit report. Then loan documents are sent to escrow.
Escrow will call you to arrange a time to sign and give you the amount needed to close. This generally happens the day before or morning of signing. You will need a cashier’s check made out to the escrow company, or you can wire the funds. The escrow officer is the only person who can tell you the exact amount of that check and it’s usually short notice. Your lender will give you an estimate so you have an idea of what to expect.
Go to signing and sign your loan papers at the escrow office. This usually happens two to three days before closing. You will need to bring two forms of ID, at least one of which is government issued with photo. Signing will take about an hour.
Loan documents go back to the lender’s office, and the funder reviews the file. There is a chance you will be asked for additional documentation or signatures, so please be available.
Your loan funds in the morning and records in the afternoon. Once recorded your transaction is considered closed.
Ta-da! Okay, now you’re done with the loan process.
Have questions? Please reach out.