THE LOAN PROCESS

It will be helpful to you to begin the process of buying a home by obtaining a lender pre-qualification.  The loan officer will help you to determine how much house you can afford so your payment will fit within your budget.  Then, with your pre-qualification letter in your hand, your realtor will be better prepared to negotiate a successful purchase contract on the home you have chosen.  Either by telephone or in person, the loan officer will initially obtain the following information:

PRE-APPROVAL

      Personal statistics

• Employment history for the past two years and current income
• Assets: checking, savings, investments and real estate
• Debts: installment, revolving, mortgage and personal
• Credit history

Documentation of the above information may be requested from you and/or directly from banks, employees, etc.

PURCHASE CONTRACT RECEIVED

• Realtor opens escrow at title company
• Title company prepares escrow instructions and requests information from buyers
• Lender orders appraisal and preliminary title report
• Lender requests any additional information needed

LOAN PACKAGING

• Lender may elect to submit for computerized underwriting; or
• Lender will prepare file for submission to an underwriter for approval

Additional information or documentation may be requested and, upon receipt, the file will be approved, declined or suspended until further information is provided.

LOAN APPROVAL/DOCUMENT PREPARATION

• Upon approval, lender prepares closing documents and sends them to the title company
• Escrow officer meets with sellers/borrowers for final signatures
• Escrow officer adds the insurance binder, termite report and any other documents required and returns the package to the lender

FUNDING

• Lender audits loan package.  Requests/receives missing information
• Lender transmits funds to title company by wire or check

RECORDING

• Title company sends the Note and Deed of Trust to County Recorder

This may occur on the same day or the day following the signing.  The date of recording is the date you will own your new home.