Tuesday, February 22, 2011

How the Loan Process Works

Step 1: Loan Set Up
After you select your lender, you will communicate with your loan officer so that he can pull your credit report and pre-qualify you by figuring out your debt-to-income ratio. Your loan officer will then customize a loan product to meet your individual needs and will lock in your rate upon your request. As your buyer's agent I will maintain communication throughout the loan process to closing with your lender.

Step 2: Once Loan Product Selected
Your lender will order title and a property appraisal, required disclosures will be mailed to you, and your lender will verify the income and debts you provided such as bank statements and W2s.

Step 3: Loan Processing
During this time your loan officer will process and compile your information for loan submission, i.e. income, assets, and credit. Your loan officer may ask you for some additional information i.e. contract, loan statements, paystubs, etc.  Your loan officer then will review your loan package to ensure the information received meets investor guidelines prior to submission to underwriting.

Step 4: Underwriting
An underwriter will evaluate your credit and property to determine adherence to investor guidelines. You should receive your final loan approval and be ready for docs!

Step 5: Funding & Closing
Your lender will prepare your papers and forwards them to the title company. The title company will then preview the lender instructions and prepare your Settlement Statement (HUD). Your loan officer will provide you with your final closing figures that should match your Good Faith Estimate (GFE). You’ll need a cashier’s check made out to the title company or have funds wired from your financial institution or relocation company.

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