Understanding the Loan Process
WE’RE HERE TO HELP
Purchasing a home can be confusing and overwhelming. It’s also one of the most exciting times in anyone’s life and we’re here to help guide you through the process worry and stress free. Here is just a little explanation of the process and who is involved in which step to help you feel more comfortable while we are working together.
CONDITION SET ONE
CONDITION SET TWO
CLEAR TO CLOSE
BUYER REALTOR LENDER ESCROW
We gather information on income, credit, and debts and make a determination about how much house you may be able to afford. Different loan programs may be discussed, and a pre-approval letter is issued.
Condition Set Two:
Your Underwriter will request any additional documentation to issue an approval such as written explanations, supplements, and verifications.
Clear to Close:
When all conditions have been received and With your pre-approval in hand, you and your reviewed, your Underwriter will issue a Clear t o Realtor can start searching for homes. Your Realtor Close. At this time your final disclosures will be will help structure your offer including contingencies drafted to detail the terms and conditions. and submit it to the Seller & Listing Agent.
When the terms are approved by both parties, a purchase agreement is executed. You can move forward to finalize the loan.
Your loan documents (Loan Docs) are printed and sent to the Closing Agent where the closing meeting takes place. Your docs will include a final Closing Disclosure, Promissory Note, Deed of Trust, Certificate of Occupancy and other documents that will need to be reviewed and signed.
You, the buyer, now referred to as a “borrower”, complete a mortgage application and supply all of the required documentation for processing. Various Closing: fees and down payments are discussed at this time, Loan documents are reviewed by a Closer and initial disclosures are issued and the loan is moved funds are wired to Escrow. CONGRATULATIONS to Processing. YOU ARE A HOMEOWNER!
Your Underwriter is a key decision maker. They review your loan package, income, assets, debt, property appraisal, credit and employment history to ensure it meets guidelines and they evaluate your ability to repay the mortgage. Your interest rate needs to be locked if it hasn’t already.
Think of Time Frames:
While you are in the process of buying a home, you must also consider time frames. You want to consider when you need to be out of your current place and come up with a back up plan if you are not able to find your new home within a certain time period.