The Loan Process

Step 1: The Application
The key to the loan process going smoothly is the initial application interview. At this time the lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The Realtor opens escrow with the Title company at this time as well.

Step 2: Requesting Documentation
Within 24 hours of application, the lender requests a credit report, an appraisal on the property, verifications of employments and funds to close, mortgage or landlord ratings, a preliminary title report, picture ID, W2s (2 years), Certificate of Eligibility, and any other necessary supporting documentation.

Step 3: Loan Submission
Once all the necessary documentation is in, the loan processor puts the loan package together and submits it to the underwriter for approval.

Step 4: Loan Approval
Loan approval generally takes anywhere from 24 to 72 hours. All parties are notified of the approval and any loan conditions must be received before the loan can close.

Step 5: Documents are Drawn
Within 1 to 3 days after the loan approval, the loan documents (inducing the note and deed of trust) are completed and sent to the escrow company. The escrow officer calls the borrowers to come in when the papers are ready for final signature. AT this time, the borrowers are told how much money they will need to bring in to close the loan.

Step 6: Funding
Once all the parties have signed the loan documents, they are returned to the lender, who reviews the package. If all the forms have been properly executed, the funds are transferred by wire.

Step 7: Recordation
When The escrow company receives the funding check from the lender, they make the lender’s security for the loan a matter of public record. They do this by recording the note and deed of trust at the county recorder’s office. Escrow is now officially closed.

Step 8: Congratulations
you are the proud owner of a new home!

Loan Documents checklist