Loan Process

The loan pre-qualification process is a review of your income, credit and assets to determine how much loan you may qualify for. This will help direct you and your real estate agent in your home search by giving you an idea of your maximum price point. You may wish to go a step further and get a pre-approval. We will gather some of your loan documentation, from which we will complete a detailed review, and run automated underwriting. This is a good tool for letting sellers know you are both a serious and qualified buyer when making an offer.

If purchasing, find a property, and make an offer. It is always beneficial to have a pre-qualification or pre-approval letter, especially in a competitive real estate market.

If you have not already completed a loan application for pre-approval, that will be the next step.  For the loan application, each borrower on the application will need:

Once your application has been completed, our team will prepare your loan disclosures, including the loan estimate. You will review and e-sign all documents, and return them with the items needed to process your loan (see general list in FAQs), ideally within 24-48 hours.

The loan estimate is an important document, and we must deliver it to you within three days of application. This document includes all of the financial information pertaining to your loan: loan amount, interest rate, estimated monthly payment, closing costs, any credits from seller/lender, deposits, etc. It is important to review this and all other loan documents. If you find any errors or omissions, be sure to bring it to your loan advisor’s attention immediately. Incorrect information could cause delays later in the process.

One of our qualified loan processors will receive and review all of your loan documentation and order any additional verifications (e.g., employment verification) as needed. If any documentation is missing, they will contact you for more information. When all required documentation is received, your loan will be submitted to the underwriting department for loan approval.

Your appraisal will also be ordered at this point. At the time of order, you will receive an invoice by email for payment of the appraisal. We will not receive the completed appraisal without your prior payment.

Title will also be ordered from the attorney or title company. This makes sure you get a clear title to the home and sets up the process for closing/settlement.

During underwriting, an underwriter will check your eligibility, confirm the information you/we have provided, and determine whether you are approved. This stage is very thorough, and it may include a conditional approval, where you’ll need to send in more documentation, prior to full approval.

When a loan is conditionally approved, it assumes that the loan will be approved after you have satisfied the conditions set forth by the underwriter. Often it is simply waiting for remaining documentation that may not have been available at the time of submission (e.g., appraisal, proof of all funds to close). Other times it can be that the underwriter requires more documentation to support a particular item (e.g., questions or documentation about income, assets, or liabilities).  This sometimes includes providing new documentation (e.g., supporting documentation for a large deposit or a letter to explain something in the file).  While some borrowers find the request of more information to be frustrating,  many borrowers encounter conditions, and it’s important you are ready and willing to to resolve any conditions in order to keep closing on schedule.

Once you have satisfied all underwriting conditions, you will receive the clear to close. At this stage, we are ready to prepare final paperwork for closing.

The initial Closing Disclosure (CD) must be signed a minimum of  three (3) business days before closing. The CD gives you another estimate of what your final mortgage payment will be and a close estimate of your cash to close. While we make every effort to give you an accurate estimate of what you will see on the day of closing, it is possible that things will change minimally prior to closing. Please keep in mind that it is very important that you sign the initial CD as soon as you receive it. Should there be any signing delays, it could impact the closing date. Signing does not imply a commitment on behalf of the borrower or lender.

On closing day, you will generally go to an attorney or title company office to complete all of the paperwork. There is often a good deal of documentation to be reviewed and signed, so this can take an hour or longer.

You will be expected to take valid photo identification. Prior to closing, you will wire any funds needed for closing to the closing attorney/title company, if applicable, based on the estimate on the Closing Disclosure. You should bring a checkbook to closing in case of any incidental changes.

If you are buying a home, you will receive the keys to your new home! If you are refinancing, it will be an additional three business days before the loan will disburse and any cash-out, if applicable, will be available for payment to you.