• Tel: 719-592-0115
    Email: dan@strong-tower.com

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    Loan Process. Pre-qualification starts the loan process. Once a lender has gathered information about a borrower's income and debts, a determination can be made as to how much the borrower can pay for a house. ... First, the borrower's ability to repay the loan and, second, the borrower's willingness to repay the loan.
  • Apply for a loan

    Buying a home can be intimidating, in part because of the loan process. Nobody teaches you how to get a mortgage in school, and it’s helpful to know what to expect before you begin. Being prepared can help you manage your expectations and prevent problems.Here’s a step-by-step checklist of how to apply for a mortgage.

    1. Reviewing your credit
    2. Preparing documentation
    3. Submitting an application
    4. Comparing offers from different lenders
    5. Underwriting and approval
  • Loan Process Continued

    Loan Process

    • Pre-approval meeting or phone conversation – This is when you provide information and documentation in order to get qualified for home financing.
    • Automated Underwriting Approval – Your loan officer will collect all pertinent information from you. Your file is run through our automated underwriting system. Based on the results, you will be issued a pre-approval letter.
    • Finding a house, putting in an offer, contract acceptance, home inspection
    • Loan Application and DisclosuresYou meet with your loan officer and sign loan paperwork in order to initiate your financing with the lender.
    • Disclosure Acknowledgment - you will receive an email with additional disclosures and a Loan Estimate (LE) which will outline your settlement charges. Often the Loan Estimate emailed to you will include over estimated amounts rather than the exact amounts you will be paying. You will want to respond to this email right away to move the process along.   It is important to understand that you are simply acknowledging that you have received this information. By electronically signing, you are NOT agreeing to pay these exact amounts – this is an estimate.
    • Loan Submitted to Lender –We submit your signed documents, credit report, income documentation, purchase contract, and title work to the lender.
    • Appraisal Ordered - Appraisal Fees can range in price from $675 to $725 for FHA and Conventional loans. This is the only fee you will need to pay up front. If you are doing VA Financing, VA appraisals are always $750 and paid with your other fees at the closing table. The loan processer will order the appraisal from an Appraisal Management Company who assigns a random appraiser. The appraiser will contact and schedule a time with the listing agent to appraise the property.
    • Obtaining Home Owner’s Insurance - This involves you contacting an insurance agent(s) to get quotes and then determine the insurance company you want to use.
    • Loan Underwriting – The lender’s underwriter will review all documentation that the loan processer has submitted. The underwriter will review the entire file (the appraisal report will most likely not be completed yet.) She/he will issue a conditional approval on your loan and list the remaining items that will be required prior to final approval.  
    • Satisfying Conditions – The loan processer will gather all the necessary items from the title company, real estate agents, insurance agents, your employer, and other third parties. She will contact you if there are any additional items she will need from you, most likely there will be.
    • Underwriter Final Review – Once the underwriter has reviewed all the items gathered and submitted by the loan processer, she will issue a final approval.
    • Final Audit & Loan Check - The lender will verify that you are still at your job by contacting your employer. They will also do a soft pull on your credit in order to make sure you haven’t taken on any new debt.   Once the audit is completed the file will be termed Clear To Close (CTC)
    • Closing Disclosure – You will receive another email from the lender with the “rough draft” of your final figures. This is the Closing Disclosure (CD.) Again, it is not likely that all the figures will be accurate yet. The figures will be corrected before your closing. Again, it is important to understand that you are simply acknowledging that you have received this information. You are NOT stating that you agree to pay these exact amounts on the CD.    
    • Loan Documents & Final Figures to Title – The lender and title company work together to make sure the figures are correct. The lender then emails you the “FINAL” FINAL CD and sends the loan documents to the title company.
    • Closing the Transaction - At this point, you are ready to sign the paperwork and move in to your new house. You need to bring your driver license to the title company and a cashier’s check made payable to the title company for the amount you will need to close. A personal check or cash cannot be accepted.
  • Loan Process Refinance

    Loan Process

     

    • Data gathering or phone conversation – This is when you provide information in order to qualify for refinancing.
    • Loan Application and DisclosuresYou meet with your loan officer and sign loan paperwork in order to initiate your financing with the lender.

    Automated Underwriting Approval – Your loan officer will collect all pertinent information from you. Your file is run through our automated underwriting system. Based on the results, you will be issued a conditional approval

    • Disclosure Acknowledgment - you will receive an email with additional disclosures and a Loan Estimate (LE) which will outline your settlement charges. Often the Loan Estimate emailed to you will include over estimated amounts rather than the exact amounts you will be paying. You will want to respond to this email right away to move the process along.   It is important to understand that you are simply acknowledging that you have received this information. By electronically signing, you are NOT agreeing to pay these exact amounts – this is an estimate.
    • Loan Submitted to Lender –We submit your signed documents, credit report, income documentation, and title work to the lender.
    • Appraisal Ordered -   Appraisal fees are usually right around $700 for conventional and FHA financing. This is the only fee you will need to pay for up front (unless you are doing VA Financing.) The VA appraisal fee is always $750 and is collected with other settlement costs at the closing. The loan processer will order the appraisal from an Appraisal Management Company or VA. They will then assign a random appraiser. The appraiser will contact and schedule for time with you to come out in order to appraise the property.
    • Loan Underwriting – The lender’s underwriter will review all documentation that the loan processer has submitted. The underwriter will review the entire file (the appraisal report will most likely not be completed yet.) She/he will issue a conditional approval on your loan and list the remaining items that will be required prior to final approval.  
    • Satisfying Conditions – The loan processer will gather all the necessary items from the title company, real estate agents, insurance agents, your employer, and other third parties. She will contact you if there are any additional items she will need from you, most likely there will be.
    • Underwriter Final Review – Once the underwriter has reviewed all the items gathered and submitted by the loan processer, she will issue a final approval.
    • Final Audit & Loan Check - The lender will verify that you are still at your job by contacting your employer. They will also do a soft pull on your credit in order to make sure you haven’t taken on any new debt.   Once the audit is completed the file will be termed Clear To Close (CTC)
    • Closing Disclosure – You will receive another email from the lender with the “rough draft” of your final figures. This is the Closing Disclosure (CD.) Again, it is not likely that all the figures will be accurate yet. The figures will be corrected before your closing. Again, it is important to understand that you are simply acknowledging that you have received this information. You are NOT stating that you agree to pay these exact amounts on the CD.    
    • Loan Documents & Final Figures to Title – The lender and title company work together to make sure the figures are correct. The lender then emails you the “FINAL” FINAL CD and sends the loan documents to the title company.

    Closing the Transaction - You are now ready to sign the paperwork. If you are doing a cash out refinance, you will receive your money three business days after the closing. These three days enables you to have time to make sure you are certain that you want to go through with the transaction. If you are doing a refinance without cash out, you still need to wait the three business days before the transaction is official.

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