Loan Process
These are the main steps in a mortgage loan process:
Application – The interview with the lender is the first step. Specific details are confirmed such as a potential applicant’s financial needs and resources. After that, an official application form will be delivered.
Documentation – Application forms are completed and several documents are requested such as a credit report, appraisal of new property, proof of employment and funds available as of the closing date, and letters of reference or previous mortgage ratings.
Submission – The package is assembled and submitted to an underwriter for approval.
Approval – The application takes 24-72 hours to be approved. All parties and informed upon approval and each individual detail or loan conditions must be agreed upon before the final papers are created and the closing process begins.
Final Documentation – All details are confirmed, including being informed on how much money will be needed to close the loan, and final documents are written. An official appointment will be made for the borrowers to sign the final papers.
Funding – All signed documents are reviewed and if no prior-to-funding conditions apply (sometimes there is a need for additional documentation) the loan is funded.
Recording – The property is transferred into the buyer’s name upon receipt of the loan funds. The deed of trust is updated with the new loan for the property and the transaction is officially closed.
