The Loan Process
Although the timelines and steps may vary slightly, here’s the basic step by step process of a loan from application to closing escrow.
Contact a lender
Loan Application
- Processing: gathering analytical and support statement from the application.
- Contact escrow and start communication with escrow officer for needed documentation
- Order and check credit report
- Order home appraisal
- Verify financial records and returns
- Underwriting: In depth review, analysis and interpretation of information and documents as it applies to the secondary market for salability
- Order mortgage insurance if needed
- Analyze credit
- Analyze and evaluate property
- Assign conditions
- Closing and funding:
- Order loan documents
- Arrange with escrow buyer signatures
- Review signed loan and lender documents
- Final conditions
- Fund loan
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Working with a Lender
There are many advantages to working with a reliable, professional lender. Some of their very important services are as follows.
Pre-Qualification or Pre-Approval: A lender will prequalify or preapprove you in order to make sure that you are sufficiently qualified for the home you want. This is not only important but in todays real estate world sellers and listing agents often require it with the offer. In this competitive market an offer without a preapproval doesn’t stand much of a chance.
Ability to find the right loan at competitive prices: Lenders can shop for the best loan, the best rate and the best price. This allows you the freedome to select the loan that best fits your needs and qualifications.
Efficient follow-up and teamwork: Once the sale/purchase has been negotiated and finalized, the lender workds with support team members in order to make sure that the loan is approved and funded in a timely manner. Anticipating and overcoming any unforseen situations before they become a problem and keeping you informed along the way.
Keep in mind that you have choices and you are not locked into a lender until you’ve actually signed the loan application. Until then you can use the lender as a great resource without obligation.