You’ve been looking at houses for months and months, and you have finally found it--the house that’s just right. Now, you’re anxious to buy your new home, move in, and get settled. But you still have an important task ahead of you--getting a mortgage loan.
|
| 1. The APPLICATION process has several purposes: |
- Assist the applicant(s) in selecting the appropriate loan programs
- Gather basic information from the Applicant/Borrower needed to underwrite the loan
- Inform the applicant/borrower of all details of the mortgage loan program, including a full disclosure of costs
- Pre-qualify applicant/horrower for ability to repay the loan
|
| 2. Loan PROCESSING includes collecting and verifying detailed information on the applicant/borrower and the property being purchased or refinanced. |
- Obtain credit report from Credit Bureau and perform ratio analysis
- Obtain and verify (if required) income from pay stubs PW2s
- Order title search on the property from title company/attorney
- Order appraisal on the property from the appraisal company
- Send disclosure forms to the applicant/horrower
- Follow up with title company, appraiser, customer on a consistent basis
- Once all information is obtained, submit customer file to the Underwriter
|
| 3. Loan UNDERWRITING is a process that determines loan eligibility. |
- The lender verifies and validates that the information provided by the applicant/horrower is correct. Once the lender makes the decision to approve the loan, a commitment letter is sent to the customer.
|
| 4. Loan CLOSING is the final stage once the loan is approved. |
- Documents are signed by the applicant/borrower with an Attorney/Title Company. Funds are disbursed.
|
| 5. Loan SERVICING provided by your Lender includes all transactions that occur from the time your loan is closed until it is repaid in full. |
