The Loan Process
We make every effort to complete your loan promptly while maintaining a high level of communication with you throughout the process. As a result, our typical loan time frame is 30 days or less.
The steps to the loan process are as follows:
We complete your loan application usually via telephone or online and receive your permission to request your credit report from our credit vendor.
We review your application and request income and asset documentation from you so that we can issue you a pre-approval (for a purchase loan) or structure your refinance. We discuss the best program options with you to fit your homeownership goals.
We will explain the loan proposal to you in person or via secure web link and gather pertinent income and credit documentation regarding the loan that we didn’t already gather for the pre-approval.
Our processing staff verifies employment, orders existing mortgage payoffs, and title commitments for the property being financed.
A licensed real estate appraiser in your state inspects the property being financed to reconfirm the value being estimated is supported. Not every loan program requires an appraisal so this step is not always needed.
We submit the complete loan package to our in house underwriting dept. There, the underwriting department will confirm that all the documentation required to approve the loan has been submitted to them.
Once the underwriter is satisfied that all the stipulations on the loan are met, they issue a final approval and the loan closing is scheduled. An outside third party agent representing the title company, meets all parties involved in the loan transaction, explains the final loan documents and oversees the signing of all documents.
The funds are dispersed on the loan transaction. With purchases and properties treated as rentals, funding occurs the day of closing. With primary residence refinances, it occurs on the 4th business day after closing.
What NOT to do During the Loan Process
Please keep the following in mind during the finance process:
- Don’t change your job.
- Don’t change your bank accounts to a new bank.
- Don’t apply for any new credit, any financed purchases, and don’t open any new credit accounts.
- Don’t be late on your credit card payments.
- Don’t make any large deposits (over $1000) into your bank account without keeping exact track of what this money is from. We will need to ‘source’ all deposits- so if you receive miscellaneous money (for example - a refund from car insurance) you will need to keep a copy of the check that was deposited and provide a letter of explanation.
- Don’t co-sign a loan for anyone. Even if you’re not the one making the payments on that loan, it increases your debt-to-income ratio.
- Avoid incurring Overdraft or Non-Sufficient Fund charges on your bank accounts.
- Don’t spend the money that you need for the down payment (if applicable).
Also, when you provide earnest money for the deposit on the purchase contract, it needs to be a personal check from your checking account. If it’s a cashier’s check or money order, then it needs to be withdrawn from your account so we can show a paper trail and source it. It cannot be mattress money or cash from a family member. Even a personal check from a spouse who is not on the loan is not acceptable by itself. That is considered a gift, and sometimes the automated system kicks out the approval. To get around that, we couldn’t use the earnest money, so you’ll have less funds available for closing.
Please reach out with any questions!