top of page
The Loan Process.
Step 1: Pre-Qualification
Before you do anything, you want to make sure that you qualify for the loan you need. A "pre-qualification is an informal process that requires some basic calculations as well as making sure that general information is met before you proceed. The pre-qualification process should only take 15-30 minutes with the required information. This can be done by phone, email of via our online simple form.
Step 2: Pre-Approval
Once you've determined that you qualify for a loan and amount you're seeking, the next step is to get an actual pre-approval. A pre-approval is a formal process which incudes running credit and verifying all income and assets. There are mandatory documentation that must be reviewed, some of which are as follows:
- Prior year W2 (if wage earner)
- Last two years federal tax returns (if self employed)
- Most recent two paystubs (if wage earner)
- Most recent two month's bank statements (all pages)
Once all the documentation is collected, your credit will be pulled and your debt-ratios calculated. We will then be able to determine the amount of loan you will be approved for as well as all other terms associated with your mortgage. You will need a formal pre-approval before you can submit an offer on a property, so it is very important you do this prior to speaking with your Realtor about making any offers.
Most lenders take a few days to get this done, but we can do it in as little as 60 minutes.
Step 3: Loan Submission
Now that you have your pre-approval, you are ready to make offers with confidence! As soon as your offer is accepted, we must begin the loan submission process as time is of the essence. Since you already provided your income and asset documents, there would only be a few more documents needed to have a complete loan package prior to submitting. Once we have a complete file, we submit the package to Underwriting for an update "Conditional Approval" which is the same approval as before but with some added requirements, like disclosures, insurance info and Escrow/Title contact.
The Conditional Approval process takes between 24-48 hours on most files but can take up to 5 days if the file is a bit more complicated. This is an integral part of the loan process as it clearly outlines updated items required and additional information about the property.
Step 4: Disclosure Acknowledgement
Upon receiving all the conditional pre-approval items, the loan file then enters its final Borrower disclosure stage. Many times, loan information, such as down payment amount, interest rate, even loan term, can change during the loan process. The final disclosure stage serves the purpose of making sure that the Borrower as well as the Underwriter and Loan Officer is fully aware of the terms of loan before it is moved onto the closing stage. This is done with disclosures being sent to the Borrower via electronic format which requires official acknowledgement and e-signatures. It is always a good idea to have a phone conversation with your Loan Officer before acknowledging the disclosures just to make sure everything is correct.
Step 5: Final Loan Document Signing
Now that you signed off on your final disclosures, your loan enters the "doc" stage which means that your are getting close! The final loan documents will be prepared and electronically sent to the Escrow Agent for preparation. At that point, the Escrow Agent or Notary will contact you to set up an appointment for loan document signing. This can usually be done any day of the week, from 8am to 8pm, but loan documents do have an expiration date, so it is recommended that you sign as soon as possible.
Step 6: Closing
Your final loan documents have been signed and headed back to Escrow. Once your Escrow Agent reviews everything, they notify our Closing Team that they are in possession of the complete final loan document package which triggers "funding". Funding is when the Lender delivers your loan proceeds to Escrow for disbursement and takes place about 24 hour after Escrow notifies the Closing Team. Around the same time Escrow is notifying the Closing Team, they will also notify you as to how much your required funds are and how to deliver them to Escrow. This is your down payment and closing costs and must be wired into Escrow. Once Escrow has the loan proceeds along with your funds, the loan process is complete.
bottom of page