Steps of A Loan Process

Make no mistake, there's several steps involved in getting a home loan. There's no need to feeling overwhelmed because most of these steps are my responsibility. This just gives you an idea of all the steps involved.

1. Consultation to discuss your individual situation. This is an information meeting to discuss your financial situation. This may be done quickly over the phone or a one-on-one meeting or may require more time on my part to do some research in order to give you the appropriate answers and information.

2. Know how much of a mortgage you qualify for. If you are purchasing a new residence, it's a good idea to know how much of a mortgage you qualify for before going out and looking at potential properties. Just knowing your loan has been approved and your application is waiting for us to only fill in the blanks with an "address" allows you to fully concentrate on buying your dream home.

3. The Mortgage Application. Now that you are ready to apply, the mortgage application forms are completed and supporting documents are supplies are needed for the mortgage program we have chosen.

4. Processing your loan file at my office. Your appraisal is ordered. During the time between ordering the appraisal and receiving the final report, I'm processing your loan application.

5. The complete file is sent to the lender. Once the verification and processing is complete, the file is ready to overnight to the lender. The lender typically takes three business days to make a decision about your files.

6. Mortgage preliminary approval. When the lender makes their decision, I receive the terms and conditions of loan approval. This means your loan has been approved and what loan conditions need to be met.

7. Commitment/Approval. Final approval is given when all outstanding loan conditions have been met and signed off by the lender.

8. Signing Loan Docs. Escrow will notify you that loan docs are ready to be signed by you. 

9. Closing/Funding. For purchases, closing and funding happen on the date of you purchase contract. For refinances, the closing date is followed by a three business day rescission period, and funding takes place on the next business day.

Congratulations, your loan is closed!