|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:
2. Loan PROCESSING includes collecting and verifying detailed information on the applicant/borrower and the property being purchased or refinanced.
- 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/borrower for ability to repay the loan
3. Loan UNDERWRITING is a process that determines loan eligibility.
- 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/borrower
- Follow up with title company, appraiser, customer on a consistent basis
- Once all information is obtained, submit customer file to the Underwriter
4. Loan CLOSING is the final stage once the loan is approved.
- The lender verifies and validates that the information provided by the applicant/borrower is correct. Once the lender makes the decision to approve the loan, a commitment letter is sent to the customer.
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.
- Documents are signed by the applicant/borrower with an Attorney/Title Company. Funds are disbursed.