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 employment, mortgage or landlord ratings, a preliminary title report, picture ID, W2s (2 yrs), Certificate of Eligibility, a dDD214 (VA only), and any other necessary supporting documentation.

Step 3. Loan Submission

Once all the necessary documentation is in, your loan processor will put the loan package together and submit it to the underwriter for approval.

Step 4. Loan Approval

Loan approval generally takes anywhere from 1 to 5 days after receiving loan applications, verification of income & employment, and appraisers report. All parties are notified of the approval and any loan conditions must be received before the loan can fund.

Step 5. Documents are Drawn

Within 1 to 3 days after the loan’s approval, loan documents (including the Note and Deed of Trust) are completed and sent to the Title Company. Your Escrow Officer will either call you directly or have your Realtor make the appointment with you to come in and sign all the documents. At this time, you will be informed how much money, if any, you will need to bring in to close the escrow.

Step 6. Funding

Once you (the Buyer) have signed the loan documents, they will be returned to the lender, who then reviews the package. If all the forms have been properly executed, the funds will be transferred by wire.

Step 7. Recordation

When the Title Company receives the funds from your lender, your Escrow Officer will authorize recordation of your signed documents with the County Recorder. He/She will then prepare a Final Settlement Statement, disburse the proceeds to the Seller, pay off the existing encumbrances and other obligations.

Step 8. You are on record!

Congratulations, you have your dream home!