What to Expect

1) Loan application is submitted for processing

• The Mortgage Loan Originator collects and verifies all documents necessary to prepare the loan file for underwriting.

• During the process, your Mortgage Consultant:

  • Begins verifying assets, income and employment

  • Orders a Credit Report on all borrowers

  • Orders a home appraisal to determine the value of the property

  • Runs various compliance and eligibility checks to ensure the process advances quickly and smoothly

• Common documentation requested by underwriting includes:

  • Two years of most recent Tax Returns

  • Two months of Bank Statements

  • Two recent employment pay stubs

  • Evidence of Earnest Money / Source Large Deposits

  • Gift Letter(s)

  • Asset Verification

  • Fully Executed Sales Contract

• Current copy of Mortgage Payment (Refinance)

• Current copy of fire insurance (Refinance)

2) Loan is submitted to underwriting

• The Underwriter begins reviewing all documentation to determine if you qualify for a mortgage.

• While the Loan Officer and Mortgage Consultant will do their best to submit a complete file, an Underwriter may still have questions and/or require additional documentation to satisfy any conditions for a final approval.

• In addition to the loan file submitted by processing, the Underwriter examines:

  • The completed appraisal

  • Credit report(s)

  • Other ancillary documentation pertinent to the loan

• If the loan is approved, the borrower receives a list of conditions required to be met before receiving final approval and notification of Clear to Close.

3) Loan is conditionally approved

• A conditional approval means that the Underwriter has signed-off on the parameters of the loan and most of the documentation, but still needs a few more items before fully approving the borrower for the loan.

• The Loan Coordinator contacts you to review the conditional approval and discuss any additional required items. This documentation can include:

  • The completed appraisal (or updates to the existing report)

  • Additional verification items

  • Standard in-house items required for closing

• Once all conditions have been obtained, the Loan Coordinator will send the file back to the underwriter for a final review and approval.

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4) Loan is Clear to Close

• "Clear to Close" means the Underwriter has signed-off on all documents and issued a final approval.

• The mortgage team schedules your closing and reviews the Closing Disclosure (CD).

  • The CD is the standardized document that details the finalized terms for the loan, including a breakdown of all costs and fees.

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5) Closing

• Closing processes vary slightly depending on the type of transaction.

• The type of transaction—purchase or refinance—determines who can provide you with accurate final numbers.

  • Purchase: You can receive estimated figures from your Mortgage Professional, but they'll need to speak with your local title company or real estate attorney for a final amount.

  • Refinance: You should speak with your Mortgage Professional for the bottom-line.

• What to bring to the closing:

  • Photo identification

  • Personal check or bank check from an approved account to cover the closing costs and down payment Your mortgage team will advise the best way to transfer funds for your closing.

• Whether purchasing or refinancing, prepare to sign a lot of documents!

  • Purchase: Typically a professional explains every document and notes where to sign. The lender’s wire may need to clear before you're handed the house keys and provided with copies of all the documents.

  • Refinance: An agent from the title company will explain each document to be signed. If refinancing a primary residence, the loan will fund once the 3-day right of rescission has expired (on the fourth day). Once the rescission period has expired, the loan can no longer be cancelled. If refinancing an investment property or second home, the loan will fund on the same day.

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6. Loan is funded

• The final step on the loan process is now complete: Your loan has funded.

• At this time, all documentation is complete and the funds for the loan have been disbursed to the seller (purchase) or to the payoff of the prior loan (refinance).

• You should receive your first payment statement at the closing. This should be used to make the first and possibly second loan payment.

  • If you did not receive the statement or cannot find it, you can reach out to your Mortgage Professional for a copy