The Loan Process
Below you will find a step by step outline of how home the loan process works. The time frame from start to finish on a typical mortgage loan runs 30-60 days. This will vary depending on the selected program and whether its a refinance or purchase. For a purchase this time frame starts after a specific property has been selected and your offer has been accepted.
Step 1: Pre-Qualification: This is the initial consultation where we discuss your employment, income, do a credit check, and determine what your hoping to accomplish. If everything goes according to plan you will move on to step two.
Step 2: Application and document gathering: During this stage you will be getting together forms we will need in order to process the loan. We also wil be completing your application and assisting you in selecting the best program for your individual situation.
Step 3: Underwriting and Pre-Approval: This is when all neccesary forms are submitted to the lender for their underwriter to review. This includes a completed loan application, income documentation, proof of cash funds, a signed Purchase Contract if applicable, and various other forms. Once they are turned, reviewed, and determined acceptable, we receive your Conditional Loan Approval. Some items will still be required to complete the process from here but you are now officially approved for a loan.
Step 4: Final Approval and loan document signing: Once all the remaining items are cleared by the underwriter they issue us the okay to proceed to your loan document signing. This typically occurs at an escrow office with a Notary present. Once complete they are then returned to the lender for final review.
Step 5: Funding: Funding is when the lender releases the money for your loan. This happens when the loan documents get back to them and they are reviewed.
Step 6: Recording: Recording of the documents occurs at the County Recorder’s Office. This completes the process and seals everything up making it official.
Step 7: To sum it all up: Congratulations! You just finished the purchase of that new home or refinance of the existing loan. Certainly there’s more involved in each step of the process but this at least gives you a general idea of how it works.
Let’s Get Started!