1. The Application: The borrowers must begin the process by completing an application. Lenders will offer at least one of three simple methods you can choose from to complete this portion of the loan process; an online application, a face-to-face interview, or a phone interview. The information requested you should easily know, but you may want to be ready with paperwork to answer questions if needed. The completed application must then be signed or e-acknowledged depending on the method of disclosure of the application.
2. Documentation: Following up the application with the specific documents your lender requests is also a very important part of getting your loan closed quickly and efficiently. The list of required documentation will be specific and needs to be followed exactly.
3. The Appraisal: During the time you are gathering your required documentation; your lender will have an appraisal ordered. Appraisers are willing to work with each borrower’s schedule. The title work is also ordered by your mortgage professional during this step.
4. Loan Approval: The loan processor will submit your loan file to the underwriting department. An underwriter is the person who approves, suspends, or denies the home loan. There are two types of loan approvals, conditional and final. Conditional approval means that the underwriter requires a few more items to fully approve the loan. These conditions are very specific and the lender will keep in touch with you if they need additional paperwork. Final Approval (known as a “clear to close”) means that you fully approved are ready for the next step. At this time, closing documents will be prepared and sent to your closing company, either an attorney or escrow company depending on the state you are purchasing your home in.
5. Signing: It is time to schedule the signing of the final paperwork, which includes the new note and mortgage! Up until this point in the loan process, nothing you have signed is binding. For purchase loans, this is the final step and you will receive the keys to your new house within a day or two upon closing company’s receipt of funds. For refinance loans, this will begin the three day right of rescission period, in which you will have three days to reconsider. The three day waiting period is not required on an investment property refinance loan. After this three day period, the loan will be completed or “funded.”
Please keep in mind that there are many circumstances that can cause these steps to vary. Each client has a unique financial situation. Your loan officer and his or her staff are there to help you along the way and to make sure you have a successful transaction .
For any questions or suggestions please feel free to email me at Ingrid.Quinn@CobaltMortgage.com or visit me at http://www.ScottsdaleMortgageExpert.com or at http://www.CobaltMortgage.com/IngridQuinn .