Here is the home loan process for purchasing a property.  Click one of these links if you are refinancing or doing a reverse mortgage.

Phase 1: PRE-APPROVAL

Pre-approval starts with your loan application and wraps up with you being given the notice that you are conditionally pre-approved for a specific loan program and loan amount.  Getting pre-approved is recommended as soon as you know you may be purchasing a property.   Here’s why… When we pre-approve you for financing, you will know how much of a monthly mortgage payment you qualify for, how much we can loan you, and what it is likely to cost. We do this by considering your income and debts, your employment and residence, your available funds for down payment and required reserves (if any), and other applicable information.

The entire Pre-Approval Process looks something like this:

You:

Gather your personal information (see our Preparation List)
Complete and submit a loan application by phone or online

We:

Enter all of your data into our secure mortgage system
Pull a current credit report with all 3 major credit bureaus
Analyze your loan application and credit report
Determine what programs you will likely qualify for
Request your Certificate of Eligibility online (if VA loan)
Determine your minimum down payment and max loan amount
Email or call you with your Notice of Pre-Approval
Email you an Items Needed List to prepare for your financing

After you are pre-approved it’s time to work with your Realtor to find a property to purchase.  Once you are ready to make an offer on something, we will give you a pre-approval letter specific to that property, based on your Realtor’s recommendations.  This letter is important and lets any seller know you are making a serious offer and that we, as your financing source, are confident you’ll qualify to make the purchase. The amount in our letter can be adjusted to match what you are offering, or it can simply state that you are pre-approved to purchase a specific property address.

It’s important to go through the pre-approval process. Without it, you don’t really know what you will be approved for and you won’t have the power of being pre-approved when you make an offer. The best part is that we do not charge any upfront fees, so our pre-approval has no obligation whatsoever! We will certainly do everything we can to earn your business, but applying does not obligate you to make any offers or to get a loan. Pre-approval is simply the best way to prepare for purchasing a property.

Phase 2: PROCESSING

Processing starts after you’ve gotten a house under contract and we have received your fully-executed sales contract from you, your Realtor, or the title company.  This informs us that you are moving beyond pre-approval and wish to obtain financing for a specific property.  Processing concludes when we receive Final Lender Approval and “Clear to Close” for your loan.

If we have not already done so, we will collect a check or credit card authorization from you at this time to cover the estimated cost of your appraisal.

During the Processing Phase, two main things are happening simultaneously. We are working with our underwriters to obtain underwriting approval for you which is why we may need to ask for additional documentation. You will also have the opportunity to lock your interest rate and terms so that they are guaranteed until we close and fund your loan.

At the same time, the property itself is being thoroughly evaluated from several angles:

You inspect the property to make sure it meets your expectations
You order a termite inspection if you choose to (required on VA loans)
We order the appraisal to make sure market value supports your loan
We order the title commitment to make sure you have clear title
We order evidence of insurance to make sure it will be in place at closing
We order a new survey or obtain an existing survey from the seller
Etc…

We know this is a lot to remember, but luckily, you don’t have to. We will manage the process from start to finish, and keep you well informed along the way. Phase 2 ends when we obtain Final Lender Approval and we receive the “Clear to Close” notification.

Phase 3: CLOSING & FUNDING

Starts when the closing documents are sent to the title company and concludes after you sign the loan documents at the title office and they receive the wire, funding your loan.

At least 48 hours before your scheduled closing, our closing team will send closing documents and instructions to the title company. The title company then prepares all of your final paperwork and sends out an initial Settlement Statement (HUD-1) summarizing all of the closing costs and funds being transferred for your purchase. We carefully review every single line item to ensure accuracy and inform the title company immediately if changes need to be made. You will also have an opportunity to review the entire Settlement Statement prior to the day you will be closing. Once we have everyone’s approval, we are ready to close.

At closing, the escrow officer will walk you page-by-page through the required paperwork. In most cases, your real estate agent and your loan officer will be there to assist you. Once the seller has also signed everything, the title company sends copies to our closing team and requests funding which sometimes does not take place until later in the day or even the following business day. Generally the seller turns over the keys after funding has taken place. We will call you when your loan funds so that you know the process is completed.

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If you have any questions whatsoever, please be sure to contact us.