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