Understanding the components will help you feel more comfortable as you go through the loan process and will also help your loan officer spot any red flags along the way should they appear.
The type of loan you are applying for will determine the length of time required for the loan process in completing your loan. Different loan types require different documentation. Your loan officer will walk you through the process up front so you will know what to expect. Typically, most of our loans take less than 30 days to close.
The mortgage application process is where you fill out the application, sign various forms that authorize the lender to process your loan, and deliver your documentation requirements (bank statements, pay stubs, W2s, etc.). This can be done online, by phone or in person. The next step cannot begin until the application is completed and the required documents are received.
When all of your documentation is received it then goes to a processor who verifies and validates all of the information to be true and correct. Verification requests may be sent to your employers, landlord and lending institutions. It is usually during this time frame that the appraisal and the title policy are ordered.
When all the information is collected the processor then verifies that basic lender loan requirements have been met. The completed package (including the appraisal and title report) is then sent to our in-house underwriting department.
The underwriter reviews your loan package to make sure it conforms to all the guidelines required for that loan product. They also review the appraisal and title report and may do additional validation of employment, mortgage payments, and credit.
Conditions and Clear to Close
When the underwriter has reviewed your loan he or she will send conditions to close to your loan officer. These are normally just requirements for further documentation to support your file. When these needs have been satisfied the underwriter will give a final approval and clear to close. Once the loan officer has the clear to close he or she then schedules and coordinates with all the parties to sign the final documents to close the loan.
When everything is scheduled the lender then draws the document package and sends it to the closing company. This can be done by overnight delivery, fax, or electronically. It can take one to two days. You meet, sign the papers, and pick up the keys.
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