Mortgage Process Brochure

Mortgage

Processing, Closing and Funding: What to Expect

As a customer of loanDepot

We want you to feel empowered and informed throughout the loan process, which is why we have created this handy overview document which outlines what you can expect now that you have originated and locked a loan with us.

This is intended to be a helpful document for your reference, but if at any point you have additional questions for us, please don’t hesitate to reach out. Our dedicated team of customer success specialists are just a click away and ready to assist you Monday through Friday from 8:00 am – 11:00 pm EST.

PROCESSING

Your loan is in processing, what does that mean?

Processors play a critical role and are an important link between our sales and underwriting teams. Processors ensure your application and loan file are appropriately prepared for our underwriters. If any aspect of your application or documents require additional clarification or support, they will be the person to reach out to you.

Everyone on our team is responsible for the completeness of your application and loan file, as well as for ensuring you have an exceptional experience with us, but once your application has been originated and your interest rate is locked, your processor becomes the quarterback.

What should you expect while your loan is in processing?

You will hear from your processor within approximately 3 business days of the file being assigned to him or her (oftentimes, it is a lot quicker than this, but timing can vary depending upon time of the month and application volumes).

Your processor will review your application and documents and ensure everything is accurate and complete. He or she will contact you to clarify and reconfirm any necessary information.

Your processor will coordinate receipt of your home’s inspection and / or your home’s appraisal, if this is required for your loan. This is a very important aspect of the loan process and helps us confirm the soundness of the home and that the loan we are offering you is appropriate.

Appraisal and home inspection timing can vary by state, location, and local market demands for these third-party service providers. As your quarterback, your processor will be diligent, thorough, and ensure we are moving through this aspect of the process as quickly as possible.

Once your loan application and documentation has been verified, and the required services noted above completed, your processor will package your loan file and submit it to underwriting for review and approval.

UNDERWRITING

What happens while your loan is in underwriting?

Once your file is submitted to our underwriting team, our underwriters will review all aspects of your loan package to confirm that you are eligible for the loan and program you selected.

During this process, it is possible that our underwriting team may ask you for additional information or documentation, as they are required to underwrite loans based upon a

specific set of underwriting guidelines and regulatory requirements. It can sometimes feel inconvenient to be asked to submit additional documentation at this stage, but this diligence ensures we are responsibly providing you with the best product that we can, while meeting our obligations to determine your ability to repay based on the terms of the loan.

Once this review is complete, your loan file’s status will be: Final Approved (clear to close),

Approved with Conditions, or

Denied

What is the difference

between Final Approved and Approved with Conditions?

Final Approved

If your loan is fully approved, it is just that: approved and ready for loan closing – we also call this ‘clear to close’.

Approved with Conditions

If your loan is approved with conditions, it means our underwriters are generally satisfied with your application, but that outstanding items remain. For example, if your loan requires an appraisal, underwriting will approve your loan subject to receipt of an acceptable appraisal prior to moving your loan to “clear to close”.

Your processor will notify and assist you in collecting any additional documentation that may be required from you.

If our underwriting team notes your loan file as approved with conditions, your processor will work with you and the underwriters to help clear and resolve any of these outstanding items so that you can move forward to final approval. It’s very helpful to be as accessible and responsive as possible during this stage, so that any outstanding conditions can quickly be satisfied.

Once approved, you are in the home stretch!

Once all outstanding conditions have been met, our underwriting team will issue a Final Approval status for your loan and note that your loan file is clear to close.

Clear to close alerts your entire loan team that your closing can be scheduled; we will subsequently work with you to schedule a closing date and time.

CLOSING

What happens before closing?

To initiate the closing process, your dedicated loan processor or an additional member of your loan team will step in to ensure your loan documents are prepared accurately and timely. This team member will be responsible for preparing your closing package and ensuring all items are reconciled and up to date.

If you will be required to bring cash to closing, your closing agent will discuss those fees with you at this time, as well as share any escrow account details necessary.

At least three business days before your closing is scheduled, you will receive a Closing Disclosure.

Your Closing Disclosure is a valuable document which outlines the terms, conditions, and costs of your loan, including: • Loan Amount • Interest Rate • Monthly Payment • Closing Costs

• Estimated taxes, insurance, and other costs • Transaction summaries and additional loan information

Once you receive your Closing Disclosure, it’s important that you review the information it contains carefully. Your processor will contact you to go over this document and verify all the final details of your loan. This will ensure that we answer any questions that you may have.

Occasionally, some itemized costs may adjust, depending on the timing and / or structure of your loan.

If this situation applies to you, we will be sure to actively communicate any changes.

What happens at closing?

Closing processes and timelines vary from state to state, and in some states, closings must take place at an attorney’s office. In other states, a professional settlement agent may come to a location of your choice to complete the process.

A closing appointment will be scheduled as appropriate to sign your loan documents and close your loan.

At your closing appointment, you will sign your loan documents, and any fees or payments due will be collected (generally these fees are due by certified check).

Please ensure that you thoroughly review and understand all items that you are signing.

If you are refinancing your primary residence with us, once you complete your signing, you’ll begin a three-business-day right of rescission period. This period is designed to protect you and confirm that you fully understand the terms and parameters of your loan program. Once this three-business-day period passes, your loan proceeds will be disbursed, and your existing loan will be paid off.

Funding and payoff timelines vary by state and lender, for any specific questions on this, please don’t hesitate to reach out to your closing agent.

NEXT

What to do next.

You will find a “Welcome to Servicing” letter with your first payment letter in your closing document package. These two documents provide a wealth of information covering what to expect after your loan is closed and where and how to make your first payment.

Once your loan has been setup on our servicing system, you will receive a welcome to servicing email. This generally takes 7-10 days after your loan closes. This email will include a link to our portal. Here you will be able to make payments, review your statements, and check your balance. All communication that we send you can be found under the “E-Document” or “Email Notification” menu items. It is critical that you continue to review any new documents in these folders during the first 120 days of closing your loan. This allows you to keep current with any changes related to your account during this period. The loan number you used to close your loan can be used to log into this portal.

Your loan number will change after closing.

• Your new loan number will be on your first statement.

• You can find any loan number changes in the documents in your “E-Documents” folder.

• You should receive your first statement approximately 20 days after your loan closes.

• It is very important to include your new loan number and any subsequent loan number changes on all future correspondence and payments.

Your first mortgage payment due to loanDepot will typically (but not always) be due the first day of the month that occurs 30 days after your closing date.

For example, if your loan closed on April 8, your first mortgage payment would be due on June 1.

Your first payment should be submitted to: P.O. Box 5710, Chicago, IL 60680-5681.

If you need to send an overnight payment, please instead send your payment to: Attn: Payment Administration, 6561 Irvine Center Drive, Irvine, CA 92618.

Future payment mailing instructions and addresses will be sent to you by our Servicing Team.

Connect with us 888-983-3389 customersuccess@loanDepot.com loanDepot.com

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