Here is a brief overview of what you can expect to experience throughout the loan process.

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1. Loan Disclosures and Loan Estimate
After you have a contract in place, a detailed loan disclosure package will be

securely emailed to you for review. This loan disclosure package will break out all the fine-print details of the mortgage you selected. It will show if you have a fixed rate or adjustable-rate mortgage. It also breaks down all of the costs and down payment associated with your mortgage program. Once you have reviewed, signed dated, and returned your loan disclosures, your file will go into processing.

 

2. What is Processing and how long does it usually take?

It’s the step before your file is underwritten. Your assigned processor will go over your entire file and prepare it for underwriting. They will prepare every aspect of your file, from verifying employment to working with the title company and prepare you for closing. They will follow up on any additional documents still pending on the file. All of our loan processing is done here at our office.

 

Processors order many different documents from multiple third -party entities. These can include tax transcripts from the IRS, title work, homeowners insurance, verifications of employment, verifications of rent and other credit items. Most files will remain in the “processing stage” for a week while waiting on these third-party items. Once your file is fully processed it is ready for underwriting.

 

3. What is underwriting and how long will it take?
Underwriting is the process where in-house mortgage underwriters review

income, assets, credit documents, title work, appraisal, and other items to issue an underwriting conditional loan approval. A team is dedicated to review all of your personal information during the qualification stage so that underwriting will be a smooth process for you.
 

Underwriting is usually 2 days or less. Upon completion, underwriters typically request additional items called “conditions”. As a result of the underwriting review, most files have additional items that need to be collected. Your loan processor will contact you and go over any items that the underwriter requests. If and when the processor requests additional documents from you. Try to return your conditions as soon as possible.

 

4. “Clear to close”, what does this mean?

Upon receipt of all items needed to clear the remaining loan conditions, the file is returned to underwriting. Once underwriting clears all of the conditions on loan, a “clear to close” is issued.  This means the loan is fully approved and ready for closing.  At that time, we will send your closing documents over to your Title Company. This usually happens a few days before closing.

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5. Closing Documents

 Once your file is clear to close, an in-house attorney will get the Title Company to

generate your formal closing documents. These will include final versions of the upfront loan disclosures and additional documents relating to the mortgage and property. The buyer, and the seller will have documents which must be signed.

 

6. Closing Disclosure

This disclosure gives all the final details of the loan including cash to close and monthly payment. This document will be sent at least three days prior to your loan closing via email. It is typically requested that you bring a cashier’s check made to the title company or a wire for the total amount needed to close.

 

7. Closing

Your realtor will work with you and the Title Company to set a date and confirm location. Closing can typically take anywhere from 45 minutes to two hours and involve signing all closing documents.

 

8. Funding

Once the Title Company has received signed documents from both the buyer and seller these are sent to attorneys for review. Once the last person signs, funding occurs generally within an hour.  You are now officially a homeowner!

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