The Basic Loan Process - 5 Steps
Introduction • • • • • •
Loan Process comes under important 5 steps. Preparing Applying Underwriting Processing Closing
Preparing: • Preparing: • Consult the best mortgage banker is the first step to construct your valuable dream (example perfect house). Their role is to help you to the entire process. Which loan is suitable for you they will guide you to the correct path. They collect valuable information related to your loan. • Don’t hesitate to ask friends and family that have recently gotten a mortgage if they have lender recommendations or reference. Look online for reviews as well. Best loan companies with contact information.
Applying: • Complete the loan application with draft application, verify with your mortgage banker before apply. If any additional documents, tax returns banker asked keep it ready, After all information is gathered your loan information will be underwriting.
Underwriting: This step comes under two process such as review and verify, approval. Review and Verify: • This stage, the underwriter checks all your documents which is meets all criteria in of your loan program. • The order may vary from lender to lender. Approval: • Once the underwriter finished their review and determine your ability of your loan, you’ll get the feedback on any further condition needs to be done for final approval.
Processing: Verify and satisfy • During this time your loan application will be verified for final stage. During your application underwriting simultaneously, processor verify the employment, rental history and fulfill any condition underwriter assigned. Third party service ordered: • Lender should keep homeowner appraisal, which is helps to validate the property value. After you have received your initial disclosures and estimate and confirm your lender know about your plan on proceeding, the lender can order the appraisal. • You also obtain the homeowners insurance, and depending on the home location, you may also need the flood insurance.
Closing: • Once your loan package is fully processed and all conditions have satisfied, then your loan process is “clear to close”. The lender your closing documents, send all your necessary disclosures, and your closing will be scheduled with your lawyers/attorney/settlement.
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